Gold prices came under renewed selling pressure in the pre-New York opening hours on Wednesday morning, this time responding to a declining crude oil and rising US dollar value. Values quickly fell towards the lower $900's as participants continued to be frustrated by the metal's recent lack of response to outside drivers and by investor apathy. The current pause is still seen as a period of consolidation and the risk of a breach of the $900 level remains in place.
Gold fell to, and held near-term support at $914.00 in overnight trading in Asia before turning higher in the morning hours, ahead of the New York opening. New York spot trading opened with gold at $ 926, up $ 1.20 as players watched the dollar dropping under 71.60 on the index, and crude oil rise to just above $ 111 per barrel. Silver was down 6 cents on the open, quoted at $17.68 but the noble metals took a harder fall. Platinum lost $48 at $1960.00 & palladium dropped $13.
The dollar touched a new all-time low vis-a-vis the euro and sank to 71.50. Europe's inflation rate touched 2.9% as crude oil prices also rose. Gold prices were pushed skywards in the fourth quarter of 2007. Silver gained 4 cents to $18.21, while platinum rose $10 to $2036 per ounce. In such a scenario Jon Nadler, senior analyst, Kitco Bullion Dealers Montreal, advises investors to watch oil, listen to Trichet and Bernanke, and follow the dollar.
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