Gold for June delivery is still settling on the Comex division of the New York Mercantile Exchange, but was shedding $2.60 to $1,418.70 in after hours trading. The gold price has traded in a tight range from $1,424.70 to $1,412.10 while the spot gold price was shedding more than $3, according to Kitco's gold index.
Silver prices closed down 10 cents to $36.98 an ounce. Both metals were able to stem steeper losses from Monday's session.
Investors were buying stocks and were in wait-and-see mode with gold and silver. Oil prices were volatile as well on reports that showed oil producing areas in Libya, now controlled by rebels, could ramp up production again. Gold and silver have been trading with oil as high energy prices underscored higher inflation.
That inflation thesis is seeing some headwinds Tuesday as China Securities Journal reported that China's central bank could raise rates to tame inflation, which is up 4.9% in February and could rise to more than 5% in March. Main consumer product companies are raising prices from 5% to 15% in April, according to the article. The central bank has already raised rates 3 times in the past year, but at 25 basis points clips, which hasn't done much to change the negative real interest rate environment. "Gold