Precious metals dropped Wednesday on continued concern over China’s cash crunch, India’s easing on gold imports, and the prospect that the U.S. Federal Reserve will soon wind down its asset-buying spree.
Gold touched $1,233.54 an ounce, the lowest price since August 2010. Silver fell more than 5 percent to $18.39 an ounce, also the lowest since August 2010. Platinum was down 2.2 percent to $1,320.49 and palladium was down 3.6 percent to $639.22.
Wednesday's losses come after gold dropped $2 to $1,275.10 an ounce Tuesday, the lowest since September 2010. Part of the reason for the decline is that India, the largest gold consumer market, is curbing imports of the metal to reduce its ballooning deficit. Meanwhile the dollar gained for the sixth consecutive day.
On Tuesday the currency leaped on positive U.S. housing news that sales were up 2.1 percent in May and prices gained 2.5 percent in April. Orders for durable goods rose in May as well, the second consecutive monthly increase.
Angelo Young is a general assignment business reporter who joined IBTimes in April 2012. Much of his career has been behind the scenes as a copy editor, assignment editor and...