Alternative Investments News - Precious metals performance

Precious metals slid on Wednesday, with gold hitting a seven-month low and platinum, palladium and silver falling more than 3 percent, as investors liquidated commodities ahead of closely watched U.S. Federal Reserve minutes.

Alternative Investments News - Precious metals performance

Selling of gold accelerated as the metal broke through a series of key technical levels, including last week's low of $1,598 an ounce and trendline support around $1,586.

Spot gold fell as much as 1.6 percent to its lowest since July at $1,578.06 an ounce, and was at $1,579.86 at 1610 GMT, down 1.5 percent. The metal looks vulnerable to further losses, with $1,575 and $1,564 seen as further support levels.

Gold has suffered this week from improving appetite for assets seen as higher risk, like stocks. Signs of an improving global economic outlook sent global equities to multi-year highs earlier on Wednesday, making precious metals less appealing.

"There is a sense in the market that equities are a better place to be and that economic conditions appear to be stabilising," Deutsche Bank analyst Daniel Brebner said.

"In that kind of environment there is a questionable role for gold."

Other commodities also ran into heavy liquidation, with oil prices down $2 a barrel and copper slipping to a one-month low. Global equities also surrendered gains after rising to multi-year highs.

Dollar strength against a basket of currencies including the euro and the Japanese yen also added pressure on gold.

"Gold's weakness is also to do with the strength of the dollar, which has been a rock relative to a number of currencies including the Japanese yen, sterling," Brebner said.

A stronger dollar tends to put more pressure on dollar-denominated commodities such as gold by making them more expensive for holders of other currencies.

U.S. gold futures for April delivery were down 1.5 percent at $1,579.80.

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