(Kitco News) - Comex gold futures have sold off sharply in afternoon trading Thursday, dropping in tandem with a decline the crude oil futures market. April Comex gold last traded down $14.80 an ounce at $1,399.20. Crude oil has sold off on rampant rumors regarding Libyan leader Moammar Gadhaffi. One rumor circulating in the crude oil market is that Gadhaffi has been shot. The rumors have not been confirmed as fact. Crude oil has dropped sharply from its daily high of $103.41 and has fallen below the psychological $100.00-a-barrel level. If there is a perceived easing of the Middle East tensions in the market place, then crude oil prices would continue to decline and that would continue to be a bearish near-term development for the gold market.

 

By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

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