Gold prices fell sharply in trading on Tuesday, tracking losses in the equity markets. The precious metal slipped amid rising worries over the global economy. Silver prices also fell sharply on Tuesday.
Gold fell below its 50-day moving average, which is a key support level.
Speaking to Reuters, Jeffrey Sherman, Commodities Portfolio Manager at DoubleLine Capital LP, said that gold behaved like every other risk asset on Tuesday. Sherman said that the negative sentiment around the Moody’s downgrades on Spain has peeled back all risk markets.
On Monday, ratings agency Moody’s downgraded five Spanish regions due their limited cash reserves and upcoming bond repayments.
Spot gold fell 1.3% to $1,706.20 an ounce on Tuesday. Gold futures for delivery in December on the Comex division of the New York Mercantile Exchange fell $16.90 to settle at $1,709.40 an ounce.
Silver prices also tumbled on Tuesday. At last check, spot silver was down 2.2% to $31.69 an ounce.
In late trading on Tuesday, the iShares Silver Trust (ETF) (NYSE: SLV
) was down 2.39%, the ProShares Ultra Silver (ETF) (NYSE: AGQ
) was down 4.77%, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL
) was up 5.03%.
Platinum and palladium also dropped on Tuesday. At last check, spot platinum was trading 2.1% lower at $1,568.25 an ounce, while spot palladium was trading 4.3% lower at $592.72 an ounce.