Gold Falls Below $900 Before Recovering - TheStreet

Gold Falls Below $900 Before Recovering

Gold prices slipped below the psychologically important $900-an-ounce level Wednesday before bouncing back in the afternoon along with crude oil.
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Gold prices slipped below the psychologically important $900-an-ounce level Wednesday before bouncing back in the afternoon along with crude oil.

Benchmark bullion futures recovered almost all of their earlier loss and were down just 20 cents at $904.80 an ounce in recent action on the Comex division of the New York Mercantile Exchange.

In the morning, gold dropped below $890 as oil ran lower and traders digested

a letter posted to the U.S. Senate Energy Committee Web site

pouring scorn on commodity speculators in the commodity complex.

John Reade, a precious metals strategist at UBS in London, says the effect of the Senate spotlight on the market may continue to be a major driving factor between now and the general election in November.

The

SPDR Gold Trust

(GLD) - Get Report

, which holds solid gold bars, was sliding 0.6% in recent trading on the

New York Stock Exchange

.

As for the precious metals patch,

Eldorado Gold

(EGO) - Get Report

and

Yamana Gold

(AUY) - Get Report

were both up less than 1%.

In the foreign-exchange market, one euro was buying $1.565, down from $1.5699 on Tuesday. The dollar was trading for 104.8 Japanese yen, up from 104.3 yen previously. The British pound was selling for $1.9754 vs. $1.9758.

The

CurrencyShares Euro Trust

(FXE) - Get Report

and the

CurrencyShares Japanese Yen Trust

(FXY) - Get Report

were declining 0.2% and 0.6%, respectively. The

CurrencyShares British Pound Sterling

(FXB) - Get Report

was steady.