Gold prices plunged as China avoids credit meltdown

Precious metal prices yesterday declined heavilydue tonews released that the number one gold importer, India, imported 18% lower in 2009 as a result of the record high gold prices that were recorded last year at $1226.25 an ounce. The high oil prices dampened demand from consumers, as jewelry became too expensive.

Tuesday, gold plummeted $22.90 or 1.99% to close at $1128.45 an ounce while the dollar lost slight strength versus six major currencies, which are gauged by the Dollar Index, declined yesterday to close at 76.99 while recording a high of 77.30 and a low of 76.75.

Among other precious metals; platinum is traded at $1559.90; palladium at $422.00; silver at $18.28; while, copper is at $332.33. Turning to commodity futures we see yesterday; S&P GSCI closed at 531.54 points recording a high of 541.35 points and a low of 528.76 points; while RJ/CRB Commodity closed at 284.52 points recording a high of 289.39 points and a low of 283.47.

Gold was set in London on Monday at $1151.25 per ounce declining from $1152.75 per ounce during the AM fixing.

In addition, Asian stocks declined the most in six weeks as a result of lower mining company stocks, while commodity prices also plunged due to China wanting to raise the amount of reserves banks have as a way to avoid another credit meltdown, bank stocks took a hit in trading therefore weighing on Asian stocks.

Currently, spot gold is traded at $1132.88 an ounce recording a high of $1133.38 an ounce and a low of $1125.15 an ounce.