silver spot

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.

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.

Spot gold started on the defensive in European trade, with follow through to the North American market. The yellow metal dipped to a session low of $1693.

Disappointing data out of China took the wind out of the metals to begin the week. Chinese Premier Wen Jiabao warned earlier that economic growth in the country in 2012 would be 7.5%, its slowest in eight years after Chinese non-manufacturing PMI disappointed at 48.4, down from the previous report of 52.9. European PMI was also a catalyst for the euro U.S pair to step back as traders bought the US dollar.

Spot gold traded in a narrow range of $20 as traders looked to square positions ahead of the weekend. The yellow metal remained above $1700, trading to an intra-day low of $1702.

Spot gold took it on the chin shedding as much as 5% at one point touching a low of $1703. The market interpreted Federal Reserve chairman Ben Bernanke's testimony as taking quantitative easing (QE3) off the table.