Gold for June delivery lost $14.50 to settle at $1,453.60 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,468.50 and as low as $1,445 while the spot gold price was shedding more than $11, according to Kitco's gold index.
Silver prices tanked 54 cents to $40.06 an ounce. Silver had been holding up in early trading despite the fact that Bloomberg reported Monday a $1 million bet by an options trader that the iShares Silver Trust (SLV) would fall 37% by July. Currently 22.6 million shares are sold short. The bearish bet wasn't echoed in the futures market.
According to Anthony Neglia, president of Tower Trading, the metals were getting bullied by Goldman Sachs (GS). The investment firm issued a note Monday urging clients to take profits in commodities as the broad rally might not last as high oil prices eat into demand. All commodities were taking a hit Tuesday, oil prices were down almost $4, especially after mixed earnings from Alcoa (AA).The heavy selling also triggered sell stops where traders are forced to dump positions to lock in gains. The reverse, buy orders, were pivotal in gold prices reaching record levels last week, but now the hot money is shaking out. "Open interest
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