From Kitco (on blogroll at right):
Gold Sharply Down, at 5-Mo. Low, Prices Drop Below $1,300
Gold prices are sharply lower and fell to a nearly five-month low in early U.S. trading Tuesday. Importantly, the yellow metal has fallen below major technical support at $1,300.00. The drop below that key level set off a large number of pre-placed sell stop orders in the futures market, to drive prices still lower. The U.S. dollar index has resumed its trek north today, which is, and has been, a significantly bearish force working against the precious metals bulls. June Comex gold futures were last down $21.20 an ounce at $1,296.60. July Comex silver was last down $0.37 at $16.275 an ounce.....MORE
The gold and silver markets saw increased selling pressure in reaction to the U.S. retail sales report for April, which came in at up 0.3%, which was in line with market expectations. The Empire State manufacturing report also came in solid. Analysts deemed the reports as showing a healthy U.S. economy that won’t deter the Federal Reserve from continuing to raise interest rates.
World stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins, and are trading near their daily lows after the solid U.S. economic data was released.
The benchmark 10-year U.S. Treasury note sees its yield back above 3.0% today.
A downbeat economic growth report from the European Union helped to weigh on equities. First-quarter Euro zone GDP growth came in at up a paltry 0.4%--down from the 0.7% growth rate (quarter-on-quarter) seen in the fourth quarter of last year. Year-on-year 1Q GDP was up 2.5%...
And more to come.
