Gold slips on a mild downside correction
Bullion prices ended mixed at Comex on Wednesday, 10 December 2014 at Comex. Gold ended the U.S. day session modestly lower on Wednesday, on a mild downside correction following sharp gains on Tuesday that pushed prices to a six-week high. Gold retreated on Wednesday as investors took profits following a strong run-up in the previous session in response to a global equities meltdown.
Gold for February delivery slipped $2.60, or 0.2%, to settle at $1,229.40 an ounce.
March silver rose 5 cents to $17.19 an ounce.
A day earlier, gold raced past the $1,200 level as investors from Shanghai to New York ran from the perceived risk of stocks. Contributing to the appetite for haven assets, like the yellow precious metal, was an decision by Chinese authorities to tighten lending regulations; while fears about Greece resurfaced after Athens announced it would hold its presidential election two months ahead of schedule.
Gold's Wednesday retreat came even as U.S. stocks were being routed amid worries about an oversupply in global oil. Typically, investors seek the safety of gold during times of steep declines in equities.
The German government auctioned two-year notes (Schatz) Wednesday for an average yield of minus 0.04%. The negative yields on recent German bond auctions underscore the ill health of the European Union economy. In other news, China's consumer price index rose by 1.4% in November, year-on-year, following a 1.6% increase in October.
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