February 7, 2010 – Led by platinum, precious metal prices dropped again today in reaction to world economic news and pricing fundamentals. Platinum tumbled to $1,472.00, down $33.00 in mid-day trading and still is stinging from a nearly $100 per ounce drop for the week. Gold came in at $1,063.50 after a Friday fall of $0.70 and silver registered a price of $14.95, also down $0.31 for the day.
Of the three, platinum with its 7% decline and silver were especially hard hit. Silver had been trading low against the Gold Silver Ratio, but fell even lower at over 71:1 on especially violent reaction to the news of gains by the US dollar. This ratio suggests that silver could be in position for a strong rally to bring its prices into a more reasonable range when compared to gold.
Much of this week’s sales were triggered by technical selling that kicked in as the metals hit various sell points. For gold, this was its three-month low, which prompted automatic sales. In addition, continued reports that the dollar is performing well against foreign currency also played a significant part in the resulting price drop.
With many analysts still encouraged at the precious metal prospects, now may be an excellent time for many investors to buy. Those who have recently liquidated positions could be ready to invest, especially those in Gold IRAs or ETFs. Investors should consider adding gold, silver or platinum bullion to their holdings as a short-term move to capitalize on any price increases in the coming days.
Senior Staff Writer - Precious-Metal.org