Daily Reports

Spot gold flirted with breaking $1600 in yesterday’s trade as commodity wide liquidation was felt through-out. The metal held $1612 and traded to an intra-day high of $1634 in today’s trade.

A complete washout for commodities across the board as precious metals, Crude oil and Equities were all lower, against a backdrop of a significantly higher U.S dollar vs. all major currencies.

Spot gold drifted sideways in North American trade as participants awaited the latest release of the Federal Open Market Committee’s latest minutes.

Spot gold traded in a tight range touching a high of $1681 and low of $1667 as Chinese investors remained on a 3 day holiday as well as the Indian Jewelers strike put a damper on physical metal sales.  The Euro dollar traded against the U.S at 1.3333 slightly below yesterday’s high of 1.3368 as the Euro zone issues have been somewhat put on the back burner, for now.

On the first trading day for Q2, markets trended higher. Precious metals gained on positive U.S data, but a choppy week lies ahead as unemployment data is due on Thursday and Friday.

As Q1:12 comes to a close and despite the $100 drop the market experienced in gold, the yellow metal at current price of $1662 is closing up 6% for the quarter.

Spot gold slid almost 1% as month end futures contracts rolled over and a weaker Euro all added to the slide, which saw gold touch a new weekly low of $1647.

Spot gold retreated on concerns the lingering strike in India will cut into the buying. The yellow metal dealt to an intra-day low of $1654.

“Enthusiasm for precious metals waned as the boost from (Federal Reserve Chairman) Bernanke’s dovish comments the previous day began to fade. Evaporating physical demand also pushed gold lower, dragging down the rest of the complex” Standard Bank said in their daily note.

Rather subdued day on the markets after yesterdays push higher by Federal Reserve chairman Ben Bernanke's comments on accommodative monetary policy, while a softer euro limited gains. Spot gold tried its hand at $1700, falling just short.

Spot gold took flight touching a intra-day high of $1689 after Federal Reserve chairman Ben Bernanke said that US monetary policy must be accommodative to improve the nation's employment rate.

Spot gold was lifted by a weaker U.S dollar as the euro rallied to 1.3293 while gold tested $166.50, all ahead of Fed Chairman Ben Bernanke’s speech.

Spot gold rallied more than 1 pct essentially back to the point it was at the start of the week before the sell off yesterday.

“Gold has been tracking the euro-dollar movements with some euro weakness adding support. Indian buying in the physical market has also resurfaced providing an extra level of support,” Standard Bank said in their daily note.