The dollar manages to hit precious metal markets once again

The dollar noticeably gained throughout yesterday's trading session amidst worries that overshadowed financial markets, causing major profit-taking waves, including several commodities and main stock indices around the world. However, this profit-taking wave managed to work for the dollar's benefit; thereby forcing speculators to sell metals.

Gold declined yesterday by 0.82% to end trading at $1103.50 per ounce; also plunging in London from 1112.00 to 1107.00. Silver also sharply depreciated yesterday by 2.22% to close in NY at $15.85 per ounce; platinum also fell by 1.18% to close trading at $1509.00 per ounce.

We witness a substantial difference in the losses endured by metals yesterday, as the decline was most seen on silver; indicating that speculations had the biggest share, after the dollar witnessed a major spike yesterday, alongside the plunge in oil. Economic data released yesterday from Germany alongside several signs appearing from developed economies add onto fears that the recovery is slowing; while the growing deficit crisis in Greece and several other European countries power jitters regarding the outlook.

The S&P GSCI index yesterday dropped by 9.14 to close at 513.25; the RJ/CRB commodity index also fell by 4.38 to close at 272.40, where the plunge and profit-taking did not stop in commodity markets but extended into stock markets. The Dow Jones index also notably plummeted yesterday by 0.97% to close at 10282.40, despite of some bullish movement occurring today in future contracts for the index; however, we still see that it is still trading near its lowest levels for this week. Today, Asian stock indices witnessed heavy losses too; Japan's Nikkei index closed at 10198.83 falling 1.48%.

Precious metals fell today amid continued risk aversion in financial markets; therefore causing the dollar to trade around its highest levels this year. Gold today is trading at $1100.00 per ounce down 0.28%; meanwhile silver witnessed the most decline by 0.69% to trade currently at $15.74; whereas platinum is trading at $1507.00 per ounce dropping by 0.13%; as of 03:01 EST.

The bearish movement could prevail in precious metal markets due to affects from the dollar. Meanwhile, yesterday's economic data from the U.S. and Germany pointed to a drop in confidence and therefore spurring a wave uncertainty in financial markets, which benefited the dollar.