Gold and the other precious metals were unable to resist the selling pressure on the commodities markets yesterday and likewise suffered significant losses. The firm US dollar was chiefly to blame for the sliding prices, as it appreciated to a four-week high against the euro. Gold fell in response by 1.3% to a two-week low of $1,185 per troy ounce. The selling pressure is likely to have been generated primarily by the futures market given that speculative financial investors have doubtless jettisoned further long positions. After all, the previous price rise had been speculatively driven to a large extent. By contrast, the SPDR Gold Trust, the world’s largest gold ETF, saw slight inflows again for the first time since the beginning of the month. Silver fell considerably more sharply than gold yesterday, shedding 2.6% by the end of trading and likewise dropping to a two-week low of $16.7 per troy ounce. In the process silver also dipped below the technically important 200-day moving average; this sparked technical follow-up selling and exacerbated the price slide. Both gold and silver are trading only slightly higher this morning.
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