NEW YORK, Aug 2: COMEX gold futures plunged to a two-week low on Friday, pressured by aggressive fund selling that shoved prices through brittle chart support on the way down, dealers and analysts said.

Benchmark December gold on the New York Mercantile Exchange’s COMEX division shed $8 to $347.80 an ounce, after it traded from $356.90 to $346, its lowest close July 18.

“It was very heavy fund selling,” commented one New York gold trader at a bank. “It looked to us that they might even be getting a little bit short in gold.”

Analysts said the drop took many in the market by surprise, considering there was no major impetus like a sharply stronger dollar to apply pressure to prices. Dollar strength is bearish for dollar-denominated gold because it diminishes its affordability overseas.

“It was pretty aggressive and the longs have to be disappointed,” one metals market watcher said, noting that the selling accelerated as prices slid through the first support area at $351-$350 in December futures.

Gold has fallen for four straight days since the funds on Monday lifted it to a six-week high at $369.70.

Analysts see the market as carrying a burdensome speculative net long position and capped by stiff resistance.

Futures also stayed sensitive to spot gold’s moves in Europe on Friday after the latest batch of U.S. economic data.

Bullion was last quoted at $347.60/8.35, sharply below Thursday’s late New York quote at $354.00/4.80. London dealers set the afternoon spot reference price at $352.35.

Institute of Supply Management figures were within expectations and the University of Michigan consumer sentiment for July was stronger than expected, but the Labour Department said the economy lost jobs in July.

COMEX September silver lost 2.3 cents to $5.097 an ounce, in a range of $5.175 to $5.06. Spot hit $5.08/10 versus $5.13/5.15 at Thursday’s New York close. Friday’s London fix was $5.12, its highest since April 2000.

NYMEX October platinum fell $6.80 to $678.90 an ounce after tumbling through technical support at around $680. Spot was quoted at $677.00/682.00.—Reuters