Updated from 12:29 p.m. EST with settlement prices
NEW YORK (
on Tuesday extended their losing streak to four days, despite support from China having re-entered the market after a week-long holiday.
Gold plummeted 1.6% on Friday
Gold for April delivery shed $5.30 to settle at $1,604.20 an ounce at the Comex division of the New York Mercantile Exchange. The
traded as high as $1,618.80 and as low as $1,600.20 an ounce, while the spot price was dropping $4.90, according to Kitco's gold index.
"I think we're seeing a bit of support from the Chinese coming back into the market, yesterday and this morning,"
Peter Hug, director of global trading at Kitco Metals, said in an interview
Prices sank four of five trading sessions last week as mainland China celebrated the Lunar New Year holiday. China provides large physical demand for the precious metal, but the country's step back into the market was failing to turn around Friday's abysmal performance.
"Friday was a perfect storm: you had four or five fundamental news stories such as the [Commodity Futures Trading Commission] indicating speculative positions were increased, the
World Gold Council suggesting that supply and demand equations for gold were less favorable in 2012
, some of the big names in the industry such as Soros lightening up on their gold positions," said Hug.
Selling arrived Friday after George Soros' fund revealed it pared holdings in gold ETFs, and as Julian Robertson of Tiger Management eliminated his position in gold-miner ETFs.
for March delivery were dipping 46 cents to $29.39 an ounce, while the
U.S. dollar index
was shrinking 0.21% to $80.46.
Gold investors were awaiting the
policy-making minutes, which are slated for Wednesday. Though most analysts do not expect a significant change in the loose-easing policy, the minutes could still provide more color on how much longer central bankers intend to implement the open-ended easing programs.
"If there's anything in this statement then it's going to show us that the hawks are starting to grab a little bit more of the control,"
Joe Cusick, a market analyst at optionsXpress, said in an interview
When asked if he expected a surprise in Wednesday's Fed minutes, Cusick said no: "If we were going to hint it, we would have gotten a little bit of taste of it both after the meeting in the past couple weeks and we didn't sense that; [Ben] Bernanke stuck to script in his news conference."