The volatility in the metals market carried over to Tuesday, with gold reversing course from the prior session’s strong showing.
Gold for February delivery GCG5, -1.85% was off $25.10, or 2.1%, to $1,193.40 an ounce, retreating after closing above the key $1,200 level for the first time since October on Monday.
Meanwhile, March silver SIH5, -2.92% dumped 50 cents, or 3%, to $16.19 an ounce.
A day earlier, gold bounced hard off lows, rising almost 4% thanks in part to a downgrade of Japan’s debt and a retreat in the U.S. dollar DXY, +0.29% Gold had started the week deeply lower after voters in Switzerland rejected a measure that would have required the Swiss National Bank to ramp up its reserves of the yellow metal.
Silver staged an even bigger comeback than its pricier cousin, climbing almost 19% from its low point in its widest intraday swing in two years.
Edward Meir of INTL FCStone was still bearish on where gold is headed.
“There is very little that has changed in the gold landscape since last month; inflation is a non-issue and looks even more remote now that energy prices are beating a hasty retreat,” he said. “Moreover, buoyant global equity markets should continue to siphon away money from gold.”
In other metals trading, January platinum PLF5, -1.82% dropped $24.10, or 1.9%, to $1,217.50 an ounce, while March palladium PAH5, -1.14% shed $8.55, or 1.1%, to $799.55 an ounce.
High-grade copper for March delivery HGH5, -1.22% gave up 3 cents to $2.87 a pound.