Gold and Silver Snips

Oct. 27

Gold futures on the COMEX Division of the New York Mercantile Exchange dropped to a new three-week low on Tuesday as U.S. dollar continued to recover after the release of a worse-than-expected low consumer confidence data. Silver and platinum both dropped.
    The most active gold contract for December delivery dropped 7.40 U.S. dollars, or 0.7 percent, to finish at 1,035.40 dollars an ounce. It touched as low as 1,032.90, the weakest level since Oct.6.
    The U.S. consumers' confidence fell unexpectedly in October. The Consumer Confidence Index, released by the Conference Board, sank to its second-lowest reading of 47.7 since May. This is well below economists' expectations of 53.1.
    This discouraging data fueled dollar's appeal of safe-haven in view of economy turmoil. By the end of gold floor trading time, the dollar index, a gauge measuring the greenback's value against a basket of major currencies, rose 0.275 to 76.47, a new peak in two weeks. The concerns that the dollar's rally might erode gold's demand of hedge pressured the precious metal to extend declines.
    December silver was down 55.5 cents to 16.54 dollars per ounce. January platinum lost 26.80 dollars to 1,319 dollars an ounce.