Futures for precious metals took a dive on Wednesday after having climbed during the past three weeks while the value of the dollar rose, Bloomberg reports.
February-delivery gold slipped 1.8 percent to a price of $1,383.20 per troy ounce just before 2 p.m. on the Comex in New York. The $25.80 loss represents the biggest decrease since mid-November. Silver dipped 5.1 percent to $28.252 per troy ounce, a decrease of $1.525 after reaching its record value of $30.75 per troy ounce on Tuesday.
"Gold is dominated by short-term traders at the moment," Frank Lesh of FuturePath Trading LLC in Chicago told Bloomberg. "Big players have taken a profit after record highs, and the dollar has stabilized, so short-term traders will sell gold and commodities."
Despite today's figures, gold is on course to mark its 10th-straight year of annual gains. The price of silver has skyrocketed 68 percent thus far this year.
One trader suggested the precious metals have peaked as silver-coin sales continue at a brisk pace.
"Once you suck in all the little people, that’s when the big players will take the opportunity to sell," Matthew Zeman of LaSalle Futures Group in Chicago told Bloomberg.
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