Reuters reports that on Tuesday, December 27, the yellowish metal once again fell below the psychological threshold of $1,600 per troy ounce, reaching as low as $1,591.09 per troy ounce early in the morning before recovering somewhat.
Though the dollar slumped slightly, interest in gold continued to decline, falling below 40,000 lots and good for one of the weakest trading sessions of the year. This reflects greater emphasis on stability in the weeks leading up to the end of the year and falls within the bounds of normal end-of-year trading.
"Technically, a close above the 200-day moving average at $1,628 in spot gold is still needed to reinstate a bull market," Carlos Perez-Santalla, precious metals broker at PVM Futures told Reuters. "The gold market will see odd movements this week as many money managers have closed out the year, leaving the market with technical and headline-sensitive traders."
At 2:55 p.m. on Tuesday, gold prices had fallen $11.10 to $1,594.90 per troy ounce, a decline of 0.69 percent.
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