LONDON: Gold sank more than 2 percent yesterday to its lowest since mid-2010, potentially opening the way for a fall to $1,000 as a surging dollar and stronger share prices weakened the investment case for non-yielding bullion.
Silver’s fall of around 5 percent was even sharper, with the metal hitting its weakest since February 2010 at just above $15 an ounce.
Spot gold skidded to its lowest since April 2010 at $1,137.40 an ounce and was trading down 1.8 percent at $1,146.40 by 1538 GMT.
Technical analysts said a test of the $1,000 level could be on the cards following a break of support at $1,150 an ounce, a key retracement of gold’s rally from its 2008 lows to its September 2011 record high at $1,920.30. The metal has lost around $100 an ounce over the past week.
Meanwhile, Brent oil rose above $84 yesterday after touching a four-year low below $82 in a day of volatile trading. Brent crude for December rose $1.30 to $84.12 a barrel by 1555 GMT, having earlier reached the day’s low of $81.63, its weakest since October 2010. US crude futures rose $1.85 to $79.04 a barrel. Reuters
