US gold and other precious metals accelerated their declines on Wednesday, ending with sharp losses as some investors continued to unwind short dollar and long commodity positions when the dollar rose to its latest year high, analysts said. Crude oil prices also fell, pressuring precious metals further, traders said.
GOLD: December gold dropped $29.50, or 3.72 percent, to close at $762.50 an ounce on the COMEX division of the New York Mercantile Exchange. COMEX estimated final gold volume at a heavy 213,816 lots. The options count was 18,363 lots. Spot gold stood at $752.55/754.15 an ounce, the 11-month low, in late Wednesday business, well below $775.80/777.80 an ounce in late Tuesday business.
SILVER: December dove 82.50 cents, or 7.04 percent, to settle at $10.89 an ounce. Silver's losses lead down to $10.7450 an ounce, a low last seen in June 2006. The session high was $11.67 an ounce. COMEX estimated final sliver volume at 42,348 lots. Silver was sold off with gold. Some analysts said the smaller volume size means exaggerated losses when investors sold precious metals as a group-traders.
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