P.M. Kitco Metals Roundup: Comex Gold Ends Sharply Lower on Uptick in Investor Risk Appetite, Technically Related Selling

(Kitco News) -Comex December gold futures prices finished the U.S. day session sharply lower. It was a "risk on" day in the world market place Thursday, as world stock markets were firmer and appear to have stabilized this week. That's bearish for the safe-haven investment asset gold. Investors and traders at are viewing, at least temporarily, the European Union debt crisis as de-escalating. Some technical support levels were also breached on the downside in December gold Thursday, to set off sell stops and push gold prices still lower. December gold last traded down $43.20 at $1,783.30 an ounce. Spot gold last traded down $40.80 an ounce at $1,780.75. December Comex silver last traded down $0.958 at $39.575 an ounce.

This week may have seen investors and traders turn the corner on the European Union sovereign debt crisis front. On Wednesday Moody's downgraded two major French banks' credit ratings. But the markets showed little reaction. That's a clue that the market place has probably factored in all the bad news coming out of and expected to come out of the EU. Worries were also eased when a conference call between the leaders of Greece, Germany and France Wednesday resulted in all three leaders pledging to keep Greece afloat in the EU. Then on Thursday morning five major central banks of the world, including the Federal Reserve and European Central Bank, announced they were adding liquidity into the European financial system by injecting U.S. dollars into it. The apparent de-escalation in the EU debt crisis worked to put downside price pressure on safe-haven gold.

The U.S. dollar index traded lower Thursday, in part due to the news of the central banks injecting greenbacks into the European financial system. The Euro currency saw a solid a rebound  on that move and on the easing EU debt tensions.

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