Gold futures turned sharply lower Thursday amid broad-based liquidation on Wall Street and hawkish commentary from the European Central Bank (ECB).
COMEX gold futures, per the December contract, initially rallied this morning, reaching a new all-time record high of $1,684.90 per ounce. However, following ECB President Jean-Claude Trichet’s comments that in spite of euro zone economic challenges, the ECB is still considering additional interest rate hikes, gold futures tumbled to an intra-day low of $1,642.20 per ounce.
The yellow metal was able to pare its losses in afternoon trading, and settled lower by $7.30 at $1,659.00 per ounce.
Silver followed a similar path, as September COMEX futures climbed to an intra-day high of $42.295 but later plunged to as low as $38.47 per ounce.