Thursday, 19-April-2007
Gold was bid on the backend Tocom, helping the prices rally up to$692 on cash. General public interest was not large enough however and theyellow metal turned around.
Spot eventually slipped down to $687 level andclosed the Far East session on the lows. During the early European hoursthe downside was extended by further five dollars, but the precious metalmanaged to rebound on some emerged buying interest and fixed at $687.25 onthe first London fixing. From there until the opening of the Comex divisionof the New York Mercantile Exchange the yellow metal remained sidelinedwithin the $687-685 range. The primary data out in the first minutes of NYtrade was slightly worse than expected. The US initial jobless claims forthe week ended on the 14th of April stood at 339,000 verses 323 thousandanticipated. The claims for the prior week were also upwardly revised.Another wave of profit taking hit gold after the data. The metal once againfailed to hold the $685 technical level, but this time follow thoughselling took the market all the way down to $679.30. Prices managed torecover back above the $680 level by the second London fixing, while the USleading indicator index rose 0.1% in March as projected. The precious metalthen spent the last three hours of trade very quietly hovering on thebottom side of the intraday range. We believe that it is important for goldto sustain the $680 level, if not, we might see further correction on thedownside.
Silver also initially tried the upside on Tocom, but then followedgold in its downside and closed the Asian session on the lows, just below$13.90. Stop loss selling took the metal further down during the earlyEuropean hours. Buying emerged below $13.70 per ounce, which helped thewhite metal to rebound and fix at $13.8350 in London. The recovery wasshort lived though as after the opening of the NY trading prices gave awayall the gains and eventually plunged to $13.55. Subsequently the marketwent very quiet with spot hovering in a narrow range below $13.65 level andfirming slightly into the close. We believe that silver will remain boundedby a wide $13.50-14.00 range in the short term before a clearer directionis established.
MKS Gold & Silver, Daily Report
By Lidia Nazarova
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