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NEW YORK ( TheStreet ) -- Gold and silver prices ended lower Thursday as investors rushed to move into cash. Gold for August delivery closed down $10.50 to $1,532.70 an ounce at the Comex division of the New York Mercantile Exchange. Gold traded as high as $1,545.50 and as low as $1,520.40 during the session, while the spot gold price was down $3.60, according to Kitco's gold index. Gold prices clawed their way back from session lows in after-hours trading after Moody's warned the United States that its triple-A credit rating would be put on review for a possible downgrade if the debt ceiling wasn't raised. The dismal news prompted a move into the safe haven of gold. Silver prices for July delivery lost $1.49 to close at $36.20 an ounce while the U.S. dollar index was 0.58% lower at $74.42.
Gold had been gaining some ground early Thursday as the market panic subsided after the Dow Jones Industrial Average's triple-digit decline on Wednesday but the metal couldn't hold its momentum. After Moody's downgraded Greece even further into junk status with a negative outlook late in the day on Wednesday, gold immediately sold off as investors rushed to cash. On Thursday, investors appeared to dive into cash and certain stocks again following a weaker than expected decline in factory orders and slightly higher than anticipated initial jobless claims.
Investors are focusing on silver's use as an industrial metal, rather than a safe haven asset, and have begun dumping the metal after a slew of disappointing global manufacturing data. Countries that produce less will use less silver. "If silver is unable to make it back over that high, $33 will be back in play," says Tower Trading's Neglia. Nadler of Kitco.com sees the range between "$33.50 to about $39. The top end must be overcome in order to even talk about the low $40s." Nadler adds that if the $33 level isn't supported by physical buying, then silver could fall to $29 and lower. Gold mining stocks were mostly lower. Kinross Gold ( KGC - Get Report) was down 0.29% at $15.70 while Yamana Gold ( NEM) was falling 1.11% to $12.52. Other gold stocks, Agnico-Eagle ( AEM - Get Report) and Eldorado Gold ( EGO - Get Report) were trading at $63.89 and $15.52, respectively.
-- Written by Alix Steel in New York. >To contact the writer of this article, click here: Alix Steel. >To follow the writer on Twitter, go to http://twitter.com/adsteel.