Gold hits 4-mth low, investors flee precious metals

Otmane El Rhazi from The Bullion Desk.

Gold sank to its lowest in more than four months after global markets plunged deeper into turmoil on Tuesday afternoon.

Spot gold was last at $1,156.00/1,156.80 per ounce after falling to its lowest since March 18 at $1,154.20 earlier. Silver is also tanking, dropping to its lowest this year at $15.01, following gold lower. It was last at $15.04/15.09, down 63 cents or four percent.

Platinum struck a fresh March 2009 low at $1,043.50 and was last $18 lower at $1,043/1,048 per ounce and palladium was down $24 at $653/658, having hit session and two-year lows of $654.

Once again, there appears to be a distinct lack of safe-haven bids in precious metals despite the crisis in Greece. Investors appear instead to be seeking other safe investments in the form of US treasuries and German debt – the yield on the latter was down nearly 15 percent at one stage, while the US 10-year yield is down nearly four percent.

In equities, the Dow is down 0.5 percent and the S&P 0.2 percent while all European indices are also in negative territory.

 

(Editing by Mark Shaw)

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