Some and eventually more than all of Monday's gains in gold were handed back by speculators this morning as a further rise in the US dollar and a hefty slide in crude oil made life a tad more difficult for the bulls in the yellow and white metals.
Following its worst monthly performance in three years, gold enjoyed a successful attempt at starting the new one off on the right foot this morning. In various gold-oriented forums the "all-clear" signal has already been sounded.
Friday's market action in precious metals got off to a bit of a mixed and rocky start as the US dollar continued its ascent on the trade-weighted index and as traders began to square books and close the trading logs on a quarter.
The overnight dip to the $1,580s did however attract a sufficient amount of bargain-hunting buyers to bring the yellow metal back to above the $1,600 mark by Thursday morning's opening bell in New York.
The recovery process got a bit tougher in precious metals overnight as global investors once again sought refuge under the umbrella of the US dollar. Midweek gold trading session opened with minor losses of about $4 per ounce.
A day of recovery was apparently in the making in the precious metals markets as the complex opened solidly in the "green" against a pullback in the US dollar and rising optimism that Europe would live to see another day
If anyone thought that Friday's heart-stopping $100+ free-fall in gold was, well,... heart-stopping, they had better be thankful that they were asleep overnight, as the yellow metal fell some $130 and touched the $1,531
Metals prices with the exception of silver attempted to recover some of Monday's heavy losses in early trading action. The currently apparent fatigue being exhibited by the precious metal has not halted unequivocal pronouncements that gold "has to go up."
Gold's Friday gains evaporated fairly promptly in the mid-morning as the metal hit a shoal of unanticipated selling and ran aground; all the way down to the $1,775 area. Traders blamed the slide on the resurgence of the "sell everything" syndrome.