Daily Gold Update

Source: Marketwatch

San Francisco— Silver and gold futures fell Wednesday on a newspaper report that high-profile investors George Soros and John Burbank have sold precious metals, with silver still reeling from an exchange decision to increase trading requirements. Silver for July delivery closed lower by $3.20 an ounce, or 7.5%, at $39.19 an ounce on the Comex division of the New York Mercantile Exchange. That was the lowest close since April 6. The contract had tumbled nearly 8% in the previous session, posting the largest one-day drop since December 2008. It also posted sharp losses on Monday and has lost 20% since Friday.

�It�s almost like a bungee jump cord, you don�t know when it�s going to bounce after a free fall like that,� said Adam Klopfenstein, senior market strategist with Lind-Waldock in Chicago.�It�s a self-fulfilling prophesy.� Traders were also digesting a Wall Street Journal report that said George Soros�s hedge fund, a firm operated by investor John Burbank and some other leading groups, have sold much of its gold and silver because there�s less chance of deflation. Goldman Sachs analysts, though, said in a recent note that gold remains �one of [their] preferred commodities,� with price trends still skewed to the upside. See full story.