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Gold Slumps To 3-Week Low On Surging U.S. Dollar; Fresh Chart Damage Inflicted

Comex gold futures ended the U.S. day session sharply lower, hit a three-week low and closed below the key $1,400.00 level Wednesday.

A stronger U.S. dollar index and weaker crude oil prices combined with a weak technical posture to pressure gold and silver prices. June Comex gold last traded down $27.80 at $1,396.70 an ounce. Spot gold was last quoted down $27.60 at $1,398.75. July Comex silver last traded down $0.689 at $22.69 an ounce.

Bullion Price Movement

Tuesday, 15 May, 2013 At the close of trading in New York today, spot prices were as follows:

NZ dollar rallies ahead of Budget

The New Zealand dollar strengthened against major currencies as investors take advantage of a dip in the kiwi to buy ahead of the government budget today.

The kiwi rose to 82.36 US cents from 82.13 cents at 5 pm yesterday. The trade-weighted index gained to 77.48 from 77.13 yesterday.

Gold logs lowest settlement in almost three weeks

Gold futures marked their fourth straight session of declines on Tuesday, as strength in the dollar and a rally in U.S. equities lured investors away and pushed prices for the precious metal to their lowest close in nearly three weeks.

Strong physical demand from Asia, however, remains a key support, analysts said.