Gold bullion prices continued to weaken during Wednesday morning trading in Europe, with the market around its lowest for seven weeks, while other precious metals fell to multi-week lows as well.
Traders said the accelerated downswing in the sector reflected continued dollar strength coupled with technically based liquidation and fresh selling – charts have turned negative. This morning the dollar was around 1.1145 against the euro, close to seven-week highs, and against a basket of currencies it stood around 95.60, also near a seven-week best.
Other commodites – notably base metals and iron ore – were also on the defensive, suggesting that short-term investors are diversifying towards other assets.
Spot gold traded as low as $1,223.00, its weakest since April 4, and was recently at $1,223.20/1,223.50 per ounce, a $4.30 loss from yesterday.
Silver matched gold in its decline, hitting $16.17, its lowest for five weeks, before settling at $16.25/16.28 per ounce, a modest four-cent gain from the soft Tuesday close.
In the PGMs, platinum, which ended under the psychological $1,000 level last yesterday, traded at $997, its softest since April 19, and was last quoted at $994/1,004 per ounce, a $5 loss. Palladium breached important chart support, falling to $531, a level last seen on March 3. It stood at $529/535, down $4.
(Editing by Mark Shaw)
The post Gold losses worsen, precious metal sector in full retreat appeared first on The Bullion Desk.
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Source: Bullion Desk News
