Precious Metals Continue to Tumble
May 30, 2008
Precious Metals Tumbling Down
Investors reacted to sliding crude oil prices and stable economic data today in large scale sell-offs to reduce peak risks. Gold has tumbled down below $875, while silver shot down below $17 to about $16.65 as of this posting. Platinum was hit hard with spot prices at $1990 by late morning and palladium slipped to about $425 or so.
Another U.S. crude oil stockpile data release should be coming out this afternoon, so much of this mornings scurry may blow over or intensify depending on this news. Dollar strength is certainly a factor as well, with the U.S. Dollar showing good gains on the Euro and other major currencies again today.
Gold bugs will look on this as a good time to average in at lower rates on physical holdings. But gold futures are also dropping, as the investment dollars are looking for other venues, so proceed carefully.
Support levels seem to be fairly strong for gold at $870 or so. It's a good benchmark to keep in mind.
On May 31, 2008 Koichi Ito
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