Bullions drop for third straight session

Gold hits nearly four-month low

Bullion prices ended lower on Wednesday, 28 May 2014. Gold's drop to levels not seen since early February still wasn't enough to lure buyers back, as prices settled lower on Wednesday for a third session in a row. It hit a nearly four-month low. Continued technical selling pressure following sharp losses on Tuesday was featured in the gold market.

Gold for June delivery lost $6.20, or 0.5%, to settle at $1,259.30 an ounce on the Comex division of the New York Mercantile Exchange. August gold, also among the most-active contracts, fell $6, or 0.5%, to end at $1,259.70.

July silver shed nearly a penny to end at $19.06 an ounce.

Gold prices were trading not far from unchanged in early U.S. trading, when prices then dropped to the daily low when sell stop orders were triggered.

The Russia-Ukraine crisis has not escalated recently and the rest of the world geopolitical front is presently quieter.

Focus in Europe is turning to next week's monthly monetary policy meeting of the European Central Bank. It's widely believed the ECB will announce further monetary policy stimulus measures at that meeting. Recent weak European Union economic data and fears of deflation setting in for the EU are solid reasons for the ECB to make a move next week.

China finance officials on Wednesday urged local governments to speed up their infrastructure spending, in an effort to prod China's general economy. The annual GDP for China is around 7%. That's about double the growth rate of other major world economies at present, but is below the annual growth rate in China of the past few years.

Economic data at Wall Street was limited to the weekly MBA Mortgage Index, which fell 1.2% to follow last week's uptick of 0.9%.

Powered by Capital Market - Live News