Gold, Silver Dive Toward 3-Year Lows

June 26, 2013

NEW YORK ( June 26) Gold and silver tumbled to nearly three-year lows Wednesday as investors focused on equities and the U.S. dollar climbed against other world currencies.
Gold for August delivery declined $45.30, or 3.6%, to settle at $1,229.80 an ounce on the Comex in New York. The closing price was the lowest for gold since August 2010. The yellow metal traded through intraday levels of $1,223.20 and $1,277.50.

"The raft of figures that came out of the U.S. all pointed to a stronger growth pattern, which pushed the dollar higher," David Lennox, an analyst at Fat Prophets, said from Sydney, according to Bloomberg News. "That’s two nails in the coffin for gold: a stronger U.S. dollar and expectations that quantitative easing will be scaled back."
Gold prices have fallen $446, or 26.6%, since closing to $1,675.80 an ounce at the end of 2012. The precious metal is off $691, or 36%, from the all-time high of $1,921.15 an ounce notched in September 2011.

"We bought gold for two reasons — because we were worried about the inflationary impact of policy and because we thought the financial system was going to fall apart," Reuters quoted Sean Corrigan, chief investment strategist at Diapason Commodities Management. "Although it may be completely the wrong judgment, the market has decided that none of those at the moment is a concern," Corrigan said.
Silver for July delivery sank 93.9 cents, or 4.8%, to $18.59 an ounce — also the lowest settlement since August 2010. Prices ranged from $18.36 to $19.58. Silver prices so far this year have dived $11.64, or 38.5%.
In PGM future prices on Wednesday:
Platinum for October delivery — now the new most-active contract — fell $46.70, or 3.5%, to $1,307.40 an ounce. Prices traded between $1,305.60 and $1,354.60.
■September palladium lost $35.55, or 5.3%, to $633.25 an ounce, ranging from $631.50 and $667.50.

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