Investing|12/29/2011 @ 3:08PM
PM Metals Roundup
(Kitco News) – U.S. precious metals futures registered multi-month lows Thursday, pressured by declining interest from speculators who have increasingly chosen to cash out their gold/silver investments or place reserves in more traditional sectors, such as a strengthening U.S. equities market.
Comex February gold futures declined for a ninth straight session Thursday, briefly dipping to levels last seen in July, prior to closing with losses of $21.50 at $1542.60 per ounce. March Comex silver hit a 3-month low early in the session, but eventually closed near the highs with net gains of 15.6 cents at $27.39 per ounce.
Spot gold futures have plunged nearly 4% during the past two trading sessions, accelerating a steady 6-week decline.
“We are in the funny week for gold…this week always brings out odd behavior and gold is usually the star of the show,” said Country Hedging analyst Sterling Smith.
Some noted investors, such as leading hedge fund managers and billionaire George Soros, are reported to have been actively selling off their gold holdings recently, and the U.S. Mint’s sales of American Eagle gold bullion coins also dropped to a nearly 3 1/2 year low in November, reflective of slumping physical demand. The Mint also announced Thursday that with sufficient gold and silver on hand to meet anticipated coin demand, it will not allocate sales to dealers in early 2012, as has been the case for several years, due to unprecedented demand and a lack of bullion supply.
Dennis Gartman, economist and author of the Suffolk, Virginia-based Gartman Letter, warned that the on-going selloff in gold futures has likely not yet reached an end.
“We fear…that there is still a great deal more liquidation to be effected, and that worse lies yet ahead,” he said Thursday. “It does indeed seem reasonable that there is enough impetus to drive the spot price of gold to — and perhaps even below — $1500/oz before the late longs are taken out, and the hedge funds are liquidated.”
more:
http://www.forbes.com/sites/kitconews/2011/12/29/pm-metals-roundup/?feed=rss_home
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