Monday, 30-October-2006
With Hong Kong being on Holiday, the market was very thin in Asia. Gold opened just below the 600 dollar mark on Tocom and helped by the buying from the general pubic traded to the high of $603.7. In Europe the Far East peak was extended to $610 from where the prices lost some ground, to fix at $608.50 on the second London fix.
The yellow metal remained firm and looking to further test upside with support from the weaker US dollar. The set of US economic data came out after the opening of the Comex division of the New York Mercantile Exchange. The Core US consumer prices were in line with the expectations, whereas personal spending and income rose by a bigger percentage than anticipated. There was good two way business with in the $604/608 intraday range throughout the NY trading session.
We believe that crude remains one of the main pivotal market drivers and that the $600 has now becomes a psychological support instead of resistance.
Silver was aggressively bought on Tocom, which lifted the prices to $12.15 bid. During the European trading hours the metal acquired further gains, in line with gold’s strength, hitting the high of $12.25. Subsequently the white metal lost ground to fix at $12.13 in London and trade down to 12.02 after the opening of Comex. The metal had good price action in NY, supported by $12 on the downside.
MKS Gold & Silver, Daily Report
by Bernard Sin
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