Gold Drops Toward 3-Month Low, Silver’s Tumble Continues

Gold prices marched toward a three-month low Tuesday while silver continued on its daily streak of descents that began on January 19.

February gold prices ended down $12.20, or 0.9 percent, to $1,332.30 an ounce on the Comex in New York — its lowest level since October 17. Prices ranged from $1,321.90 to $1,338.00. The yellow metal has fallen 6.3 percent in 2011.

"The improved economic outlook over the past weeks has dimmed gold’s appeal as safe-haven investment, but concerns about inflation may continue to support," analysts at Richcomm Global in Dubai said and were quoted on MarketWatch.

"Nothing fundamentally has changed at all. It’s just that too many investors have gotten long (bullish)," Dennis Gartman, publisher of the Gartman Letter, said and was quoted on Reuters. "The weakness in the past week and a half has made those late to the party uncomfortable, forcing them to sell. In the process, it will make the market healthy again."

Silver prices for March delivery declined 51.6 cents, or 1.9 percent, to $26.805 an ounce. They ranged from $26.540 to $27.035. Silver has plunged 13.4 percent in 2011 after soaring 83.7 percent last year.

Platinum prices for April delivery fell $32.30, or 1.8 percent, to $1,787.30 an ounce. Prices ranged from a low of $1,781.10 to a high of $1,820.70. The metal has edged 0.5 percent higher in 2011.

Palladium prices for March delivery dropped $31.80, or 3.9 percent, to $784.75 an ounce. Prices ranged from $776.25 to $810.05. Palladium has fallen 2.3 percent this year.

In PM London bullion prices, the benchmark gold Fix declined $19.00 from the previous PM fixing to $1,324.00 an ounce. The silver fixing was $26.700 an ounce, down 86.0 cents. Platinum was $1,787.00 an ounce, down $35.00. Palladium was lower by $30 with its fixing at $786.00 an ounce.

U.S Mint bullion coin sales figures have remained unchanged since Friday.