Gold Hits 7-Week Low, Silver Reaches 7-Month Low

The sell-off in gold and silver accelerated on Friday as precious metals came under significant pressure yet again.

The spot gold price tumbled as much as $66.45, or 3.8%, to $1,674.30 per ounce – its lowest level since August 5, seven weeks ago.

James Steel, precious metals analyst with HSBC, commented that “We had further liquidation related to margin selling from yesterday.  The currency markets are still pressuring gold … and funds have been going more into Treasurys and the U.S. dollar.”

While gold posted a substantial decline, it came nowhere near the loss its sister precious metal faced.  Silver plummeted as much as $4.03, or 11.1%, to an intra-day low of $31.85 per ounce – its lowest level since late February of this year.

If silver’s slide continues, it has a chance to challenge its largest single-day drop in the past 20 years – a 13.8% slide on April 20, 2006, according to FastSet Research Systems.