Gold and other precious metals tumbled Thursday as traders in the currency market reversed course and bid up the dollar in the wake of the previous afternoon’s statement from the Federal Open Market Committee.

Technically oriented selling was triggered as gold fell to its weakest level since the last day of 2007.

“We’re having margin selling and liquidation,” said George Gero, vice president with RBC Capital Markets Global Futures. “That usually follows after you’ve had a severe downturn like this without a rally.

“It seems to be hitting platinum. It’s hitting palladium. It’s hitting silver. And it’s hitting the crude oil, which is down to $110 (after challenging $120 early in the week). We’re having a general liquidation in commodities, mainly due to the strength in the dollar and a better outlook in the credit markets and the stock markets.”

As gold was closing, crude oil was down roughly $2.50 a barrel, which in its self tends to weigh on the metals.

June gold lost $14.20 to $850.90 an ounce on the Comex division of the New York Mercantile Exchange. As pit trade was closing, the June contract at the Chicago Board of Trade was down $14.60 to $850.60.

Comex July silver fell 38.8 cents to $16.205. As it was closing, CBOT July silver was down 39 cents to $16.191.

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