Gold opened a couple of dollars lower on Tocom verses Wednesday’s closing price. Subsequently the metal was paid throughout the Asian session to hit $653.80 per ounce shortly before the settlement. In Europe the price action remained fairly quiet with spot remaining firmly above the 650 level.

Gold gained over three dollars after NY close last night to open around $648 levels on Tocom. Prices were quickly pushed up to $648.50 where buyers turned into sellers, forcing the metal to give away the gains.

Gold dropped four dollars compared to Monday’s closing price due to approximately 700 thousand ounces liquidated prior to Tocom opening. Short covering emerged on the dip down to $633 levels which dragged spot slowly higher.

Tocom once again opened limit down with gold initially getting some support from the physical buying interest. Japanese and Hong Kong traders were however happy to sell the rally capping the market at $644.50. The weaker euro currency also helped the yellow metal to come off.

Gold had rallied 14 percent since the beginning of the year, but market conditions have changed dramatically since the start of this week. Participants seemed to be reassessing their previously bullish forecasts of a rally above $700 for the yellow metal.

Following Tuesday’s close of around $684.50 levels gold was aggressively sold down. The market got very choppy and volatile and was short of liquidity. With stops hit on the way spot plunged to $659.50 in only a couple of hours.

Gold opened unchanged from Monday’s close in Asia. Prices retreated two dollars during Tocom hours due to selling by the general public, which triggered stops below the 2682 level. Continuing bids from overseas traders however prevented from a further decline.

It was an extremely quiet start of the week. Gold was bid in Asia with prices on Tocom reaching $687.60 on aggressive buying. The cash market was however fairly well offered and the metal retreated over a dollar from the peak by the Far East close. In Europe spot drifted lower, but found support below $684.

Gold was sold after NY close of just below $680 yesterday, to open five dollars weaker in Asia. In the first minutes of Tocom trading aggressive selling from the general public pushed the prices down to $673 given.

Having reached a nine-month high in NY yesterday gold weakened following the FOMC minutes. Federal Reserve policy makers were stated inminutes of FOMC meeting of January 30-31 as saying that “economic growth had slowed over the course of the year, partly reflecting a substantial cooling of the housing market” and that the economy seemed likely to expand at a moderate pace over coming quarters.