We saw a sharp drop in gold yesterday closing below the psychological important $1000.00 mark. After hitting an intraday high of $1019.30/oz the yellow metal started to tumble paying a heavy price for longs decision to book profits. A stronger US currency accompanied by a steep decline in crude prices added to the downside pressure. And probably the icing on the cake, making a really 'ugly day' for the bulls were some stops just above the $1000.00 level which were hit on the way down thus accentuating the sell off. Silver was badly hit as well, losing 73 cents. After swinging around $17.000 level, its inability to break convincingly higher was followed by a nasty correction settling at $16.077/oz.

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Gold & Silver

METAL

LEVEL

CHANGE

GOLD

996.47

(-12.46)

SILVER

16.077

(-0.73)

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