Gold prices dropped more than 1% Tuesday, ready for their lowest close in more than three months, with Ukraine’s election results, technical selling and equity gains all viewed as weighing on the precious metal.
Gold for June delivery was down $24.30, or 1.9%, to $1,267.40 an ounce on the Comex division of the New York Mercantile Exchange. Tracking the most-active contracts, prices haven’t closed at a level this low since Feb. 7, according to FactSet data.
July silver lost 35 cents, or 1.8%, to $19.075 an ounce.
The “bottom has fallen out from under gold” as “Ukraine concerns (and political risk premiums) fade following last weekend’s decisive election result,” said Colin Cieszynski, senior analyst at CMC Markets, in emailed comments on Tuesday.
Gold was testing “$1,275 channel support,” which could indicate if it is ready to move lower or bounce back, he said.
Source: Marketwatch
