U.S. gold prices on Tuesday plummeted the most in a single day since July.
Gold prices for February delivery plunged $44.10, or 3.1 percent, to $1,378.80 an ounce on the Comex in New York. Prices ranged from $1,375.00 to $1,417.80. Profit-taking and a stronger U.S. dollar were heavily cited as reasons for the declines.
"The market is being led lower by significant weakness in the commodity space," Andrew Ross, a partner and global equity trader for First New York Securities LLC, said and was quoted on Bloomberg. "The market is in desperate need of some sort of pullback. The weakness in commodities as well as the strength in the U.S. dollar has brought selling pressure into equities. The market was remarkably resilient into the end of the year, and the result was a very extended market."
Other precious metals followed the yellow metal, with silver diving the furthest by registering a loss of 5.2 percent.
- March silver prices plunged $1.617 to $29.508 an ounce. They ranged from $29.325 to $30.885.
- Platinum prices for April delivery lost $39.00, or 2.2 percent, to $1,747.40 an ounce. Platinum ranged between $1,743.10 and $1,777.50.
- Palladium prices for March delivery fell $31.35, or 3.9 percent, to $769.05 an ounce. Palladium ranged from $765.10 to $795.20.
In PM London bullion prices, the benchmark gold fixing was $1,388.50 an ounce for a loss of $21.75. Silver gained 4.0 cents to $30.670. Platinum was $1,753.00 an ounce, up $22.00. Palladium was $784.00, down $7.00.
United States Mint bullion coin sales figures remained unchanged from the previous day.
|U.S. Mint 2011 Bullion Coin Sales|
|American Eagle Gold Coin (1 oz)||8,500||8,500|
|American Eagle Gold Coin (1/2 oz)||0||0|
|American Eagle Gold Coin (1/4 oz)||0||0|
|American Eagle Gold Coin (1/10 oz)||5,000||5,000|
|American Buffalo Coin (1 oz)||Not Yet Offered|
|American Eagle Silver (1 oz)||1,696,000||1,696,000|
I think this nosedive took a lot of people by surprise. MACD, a technical used by many chartists was indicating a move upwards.
The current drop is still in line with trend. Gold dropped to the 50 day moving average support and Silver to the 20 DMA.