Gold Futures Dropped, Silver Follow Their Example

Tuesday gold futures on the Comex division of the NYMEX dropped nearly $7 on fund profit taking and trade selling spurred by the marked rebound seen in the U.S. dollar versus its
rivals.

The most active December contract settled $6.80 lower at $416.60 per ounce.

More such selling is deemed likely over the coming days as fund players
continue to unravel portions of their hefty long exposure to the market.

Potential retreat points include $410 initially followed by the $404-$405
area, dealers agreed. The same targets apply to spot gold, which pulled back to
a five-day low of $412.65 Tuesday.

December silver followed gold's lead and sank to five-day lows of $6.96 amid
jittery trade.