physical demand

On the final trading day of April we saw volatility. Spot gold retreated to $1645, only to bounce back to trade above key support at $1650.

Spot gold started the week off firm before mixed US data and a softer Euro took the metal off of its highs at $1665. The metal recovered by late afternoon to trade above $1650. It was mostly thin volumes as China and Japan are out due to holidays. The euro slipped to 1.3205 on further uncertainty in the eurozone as Spain has fallen back into recession.

The reoccurring theme of lackluster U.S data emerged once again.  Spot gold rallied to new 2 week highs of $1668 on the heels of this poor data.

Precious metals advanced Thursday as disappointed U.S jobs data coupled with Fed Chairman Ben Bernanke speech yesterday have left investors nervous and fleeing out of the U.S dollar.

Poor Chinese GDP data caused traders to sell metals positions on fears of a Chinese economic slowdown. Spot gold dropped $25 to $1649.20.

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