By Todd Shriber
New York, March 6 (TradersHuddle.com) - Global macroeconomic concerns triggered another miserable day for gold as spot prices for the yellow metal slid 2.1% to $1,670.41 per ounce. Comex gold for April delivery plunged $31.80 to close at $1,672.10. Trading volume was heavy, with more than 20,000 lots of the April contract changing hands within the first 10 minutes when the U.S. stock market opened, and volume was 25% above the 30-day average, according to Reuters data.
Speaking of big volume increases, the iShares Gold Trust (NYSE: IAU) slid 1.9% as almost 11 million shares changed hands compared to average daily turnover of less than 6.6 million shares. The SPDR Gold Shares (NYSE: GLD) slid 1.8% on volume that was approximately 20% above the daily average. Making those declines even worse is the fact that both GLD and IAU are now clinging to their 200-day moving averages by mere tenths of a percentage point. Another bad day at the office for gold and these ETFs could see intense panic selling.
Not surprisingly, the iShares Silver Trust (NYSE: SLV) was taken to the woodshed today, tumbling 3.1% on volume that was about 65% higher than normal. SLV is losing handle on support at $32, is below its 20- and 200-day lines and could easily give up its 50-day line in the next day or two. SLV has plunged almost 11% in the past week alone.
Speaking of weak charts, the chart of the ETFS Physical Platinum Shares (NYSE: PPLT), keeps getting uglier and uglier over time. Today, PPLT dropped another 2.6% on volume that was approximately 75% above the daily average. As we mentioned yesterday, support at $165 failed, and if the 50-day line doesn't hold up, PPLT could fall to $150 or lower.
Any reason to stick around with the ETFS Physical Palladium Shares (NYSE: PALL), apparently went out the window today. PALL plunged almost 6% on volume that was nearly triple the daily average, and if support at $65 doesn't hold, it's hard not to see PALL falling at least to the high $50s, if not lower. Simply put, PALL is serious technical danger here.
It seems like only a few days when the Global X Silver Miners ETF's (NYSE: SIL) technicals looked good. No more, it slid 3.4% on strong volume today and is now found resting below all of its key moving averages. If SIL doesn't find a floor and find it fast, a return to $20 isn't out of the realm of possibility.
Another bad chart comes courtesy of the Global X Copper Miners ETF (NYSE: COPX). On above average volume, COPX dropped almost 4% today and look extremely weak. The global macroeconomic melodrama that is now playing out is the perfect excuse for sellers to hammer ETFs like SIL and COPX and there appears to be no relief in sight.
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