Gold Turned Lower (GLD, SLV, IAU, ABX, AUQ, GG, KGC, PAAS, HL, COPX, FCX, SCCO)

Published on Wednesday, 21 December 2011 17:40 Written by Paul Oldrini

New York, December 21st (TradersHuddle.com) - Gold prices ended slightly lower on Wednesday, but pared bulk of its early gains as the dollar moved up on the European Central Bank’s loan offer to euro-area banks.

Gold for delivery in February fell $0.30, or 0.03%, to settle at $1,617.40 an ounce on the Comex division of the New York Mercantile Exchange, after hitting session high of $1,643.70 and as low as $1,607.70 an ounce.

After trading higher in the Asian session, gold prices quickly lost stream as the ECB provided $639 billion to 523 banks for three years. It is the largest ECB infusion of credit into the banking system in the euro's 13-year history. Following the news, the dollar index jumped back above 80 level, which put additional pressure on the yellow metal.

Last week, gold prices slumped to 5-month low as well as below its key 200-Day moving average level of $1620 as a sudden fall in the euro sparked d fears of a liquidity shortage and led the selling across most markets. However, after moving back above its 200-day Moving average price, it was unable to close below the critical level.

Analysts believe that gold must close above the 200-day moving average to truly reassure traders and restore confidence in an up-trend.

March copper added 2 cents, or 0.6%, to end at $3.39 a pound and March palladium added $6.30, or 1%, to $634.90 an ounce.

March futures for silver fell 18 cents, or 0.60%, to $29.7 an ounce. January platinum futures also fell $2.40, or 0.2%, to $1,430.50 an ounce.

SPDR Gold Trust (ETF)  (NYSE:GLD) rose 0.18 (0.11%) to $157.16, iShares Silver Trust (ETF) (NYSE:SLV) slumped 0.17 (-0.59%) to $28.60. iShares Gold Trust(ETF)(NYSE:IAU) was up marginally.

Barrick Gold    (NYSE:ABX) climbed 0.19 (0.41%) to $46.28, AuRico Gold  (NYSE:AUQ) gained 0.27 (0.43%) to $62.88, Goldcorp (NYSE:GG) fell 0.65 (-1.43%) to $44.91, Kinross Gold (NYSE:KGC) also fell about 0.50%.

Pan American Silver  (NASDAQ:PAAS) rose 0.01 (0.05%) to $22.23, Great Panther Silver Limited (AMEX:GPL) fell about 1% and Hecla Mining Company (NYSE:HL) fell about 0.20%.

Global X Copper Miners ETF  (NYSE:COPX) rose 0.09 (0.66%) to $13.70, Freeport-McMoRan Copper & Gold    (NYSE:FCX) was up 0.17 (0.45%) at $37.75, Southern Copper Corporation(NYSE:SCCO) was up 0.75%.