Gold under $1,200 for lowest close in over 3 years

Precious metals market update December 19:  Gold futures sunk to their lowest prices in more than three years on Thursday in response to the Federal Reserve’s January tapering plans and a rally in the U.S. dollar. February’s gold delivery plummeted $41.40, or 3.4%, to settle at $1,193.60 an ounce, their biggest one-day loss since June, and December gold settled at $1,195, its lowest close since August 2010. Silver was also hit hard, with March deliveries down 87 cents, or 4.4%, to end at $19.19 an ounce. Gold and silver stumbled immediately following the Fed announcing their decision to cut its monthly bond buying stimulus from $85 billion to $75 billion, and strong dollar gains (from 80.477 to 80.602) late Wednesday added insult to injury. The selling extended to other metals in Thursday’s trading as well, with January platinum dropping below $1,320 an ounce. However, palladium for March and high-grade copper both saw gains. Read more…