Comex Gold Hammered Lower, Hits 3-Month Low on Panic Long Liquidation

(Kitco News) -Comex gold futures prices are careening lower in late-morning trading Wednesday. February gold prices hit a fresh three-month low of $1,586.00, as of this writing. Panic and weak long liquidation in futures is occurring, amid the "risk-off" day in the general market place that has also seen the U.S. dollar index hit a fresh 11-month high. The stronger greenback has added to the downside pressure on gold. This week, alone, the price of gold has dropped by around $140.00 an ounce. Serious near-term technical damage has been inflicted this week, as gold has dropped below what were psychological support levels of $1,700.00 and $1,600.00. Now, the next downside target for the precious yellow metal is major psychological support at the $1,500.00 level. February gold last traded down $74.00 an ounce at $1,589.00.

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