Gold Pared Loses, Back Above $1600 an ounce (GLD, SLV, IAU, ABX, AUQ, IAG, GSS, NGD, PAAS, SVM, COPX, FCX, RIO)

Published on Monday, 19 December 2011 09:02 Written by Paul Oldrini

New York, December 19^th (TradersHuddle.com) – Gold prices recovered from earlier loses, bouncing back above $1600 an ounce as the Dollar moved lower. Gold prices had been under heavy selling pressure last week, tumbling 7%.

Over the past few months, gold has lost its glory of safe haven, and has started to move in tandem with other risk asset classes. Last Wednesday, Gold was down about 5.70% after Moody’s warned that it would review all the euro countries over the next three quarter, despite the fact that EU leaders had reached an agreement at a Summit two weeks ago. The agency believes that the deal would have very minor effect on its review policy, sparking panic in the market and the entire commodities slumped on Wednesday.

On the other hand, copper prices slid over 1% as Beijing’s property market started to fall due to recent strict policies. Prices has slumped over 7.50% so far this month on fears that demand for the metal would reduce due to slowdown in the global economy.

Among other precious metals, benchmark March futures for silver was down about 2% to $29.13 an ounce, and the palladium rose 0.4% to $673.jumped 0.1% to $1,418.70 an ounce.

SPDR Gold Trust (ETF)  (NYSE:GLD) 0.77 (0.50%) to $156.00, iShares Silver Trust (ETF) (NYSE:SLV) slumped 0.61 (-2.11%) to $28.24. iShares Gold Trust (ETF)(NYSE:IAU) was up marginally.

Barrick Gold    (NYSE:ABX) climbed 0.44 (0.98%) to $45.37 in the pre-market session, AuRico Gold  (NYSE:AUQ) gained 0.80%, IAMGOLD Corporation (USA)(NYSE:IAG) added 0.80% to $16.52, Golden Star Resources (AMEX:GSS) also climbed about 0.50% and  Market Vectors New Gold (AMEX:NGD) marginally to $10.10

Pan American Silver  (NASDAQ:PAAS) fell 0.50% to $22.02, Silvercorp Metals (NYSE:SVM) gained 0.05 (0.79%) to $6.39.

Global X Copper Miners ETF  (NYSE:COPX) fell 0.70%, Freeport-McMoRan Copper & Gold    (NYSE:FCX) was up 0.24 (0.65%) to $37.23, Rio Tinto plc (ADR)(NYSE:RIO) was up marginally.