Gold Ends Slightly Lower on Follow-Through Pressure, Weak Long Liquidation - report
Comex gold futures prices ended the U.S. day session slightly lower Wednesday, on some follow-through selling pressure from Tuesday's sharp losses, according to Kitco News. It said weak-handed longs in gold and silver have also exited their positions during this latest downturn in prices that has made for a deteriorating near-term technical posture for both.
February gold last traded down $1.80 an ounce at $1,668.90. Spot gold was last quoted down $3.00 at $1,668.50. March Comex silver last traded down $0.439 at $31.23 an ounce.
Kitco said: "With the solid selling pressure in the U.S. dollar index this week, which has seen the index hit a fresh three-month low, many gold and silver bulls are wondering why the weakening greenback is not supporting their metals more. One factor may be that recent geopolitical developments have reversed some of the safe-haven trader and investor plays taken in recent months. This is evidenced by the recent strong selling pressure in the dollar index and in the safe-haven U.S. Treasury bond and note futures markets. Gold, too, is a safe-haven investment asset, and to a lesser degree silver.
"Ideas the U.S. fiscal cliff matter will be resolved on time, improving investor sentiment regarding the European Union debt crisis, better economic data coming out of the U.S. and China, and no fresh flare-ups in the Middle East in recent weeks have somewhat becalmed the market place.
"Still, even the veteran market watchers are hard-pressed to make fundamental sense of recent price action in many markets, including the precious metals. End-of-the year book-squaring and position evening, and thin holiday markets, are also likely partly responsible for seemingly illogical moves in many markets just recently."
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