Find Out Why Precious Metals Opened Low And Traded Flat Today Directly At Precious-Metal.org

February 22, 2010 – Precious metals opened lower today, and then traded flat on a rather uneventful Monday. Gold prices dropped $4.50 to $1,113.60 per ounce, silver dipped to $16.21 on a eight cent decline and platinum ended the day at $1,527.00, a -4.00 decline, starting the day lower and then trading basically even during the session. A combination of economic concerns and technical selling was blamed by many as the cause for the fall.

“Participants were selling previously bought positions as the dollar gained ground, and there were concerns about further dollar gains”, explained Michael Gross, broker and futures analyst with OptionSellers.com. These technical sales among precious metals combined with lingering concerns of the sovereign debt crisis to spur interest in the dollar.

“The European debt doubts continue to make investors jittery and push them toward the perceived safety of the U.S. dollar. There's a fear in the back of gold and silver players' minds right now that this dollar rally might not be over," Gross said. That opinion does not seem to be the prevailing one as most analysts saw today’s decline as investors selling previous positions and some increased resistance. Speaking of gold, Patrick Donnelly, a senior market strategist at Olympus Futures said, "We saw some basic resistance toward the highs in the $1,130 area.”

While the sales dampened demand during today’s session, the outlook is still positive as the overriding fundamentals still suggest further price increases and investors are not bullish on currency-based investments. For many people, a day like today offers a good opportunity to get better prices on precious metals in advance of the next wave of increases. 

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Danny Burns

Senior Staff Writer - Precious-Metal.org