gold spot

FastMarkets March 19th, 2014

Precious metals prices continued to consolidate on Tuesday with the complex pulling back by an average of 1.6 percent at the day’s lows, with the silver price down 2.6% at $20.62, while gold dropped to a low of $1,350.65. By the close they were down an average of 0.9 percent with the gold price finishing at $1,355.65 and silver at $20.82. The PGMs closed down around 0.6 percent.

Spot gold drifted lower in light trade as the U.S markets geared up for the thanksgiving holiday. Spot gold touched an intraday high of $1730 on the heels of a weaker U.S green back.

Spot gold has remained relatively range bound between $1705 and $1740 as traders squared position on the short work week.

Precious metals traded lower in the early part of the North American session as fears of global growth after the release of disappointing economic data yesterday.

Precious metals remained in a holding pattern as gold traded in a tight range ahead of the FOMC minutes and Ben Bernanke’s speech.

Spot gold sold off to $1625 after the FOMC policy statement did not specifically allude the need for additional quantitative easing (QE3) in the near-term, but quickly recovered shortly thereafter as bargain hunting emerged on the price decline. Some highlights of the FED statement are...

Spot gold remained range bound on a quiet day with the yellow metal touching $1663, before easing to trade around $1656.

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.

The selling eased as a small rally in gold put the yellow metal above the $1650 level.

Precious metals were in rally mode as growing confidence that a Greek debt swap will be well enough in favour to avoid a credit event.

Spot gold traded to $1704 as the Euro picked itself off the floor to start a rally of its own. The single currency traded to a session high of 1.3278 amid growing confidence on the Greek bond swap.

"Expectations that the take-up will be sufficient to allow the debt swap to proceed without any activation of the collective action clauses expectations have kept the euro buoyant," Standard Bank said.

Spot gold recovered earlier losses moving into positive territory touching $1687 as upbeat U.S data gave the metal a renewed life after last week’s $100 drop.

Spot gold continued losses which started yesterday sliding another $40 to trade to a 1 month low of $1663.

A lack of economic data coupled with concerns of global growth had traders shedding long positions ahead of Friday’s all important U.S jobs report. The U.S dollar was back in favour with investors, the Euro dollar continues to be under pressure as traders questioned whether private creditors will agree to a Greek bond swap deal as a default could be very imminent.