Gold opened about a dollar lower compared to the NY closing price Wednesday – MKS

(OroyFinanzas.com) – Gold opened about a dollar lower compared to the NY closing price Wednesday and Tocom kept being offered pushing spot down to $609.50. In the absence of any follow through the yellow metal saw some short covering towards the end of the Asian session which allowed it to recover from the lows.

During the European hours the precious metal gradually gained ground to fix at $613.50 on the first London fixing. A brief dip followed though, but that was short lived as Bank of England unexpectedly raised interest rates. Sterling jumped while US dollar retreated slightly against the major European currencies. After the opening of the Comex division of the NewYork Mercantile Exchange gold made a sharp move on the upside, which extended the high to $615.80. The gains could not be sustained though as US initial jobless claims came out to be at their lowest level in more that five months last week. Crude trading around $53 per barrel and euro below $1.30 level also added to the downside pressure. The market was very choppy and volatile. The prices fixed at $612 on the PM, which is a 100-day moving average and then kept nervously retreating and recovering to finally settle at $612.75. We believe that in the short term gold will remain range bounded.

Silver came off in the Far East with Wednesday’s closing price marking Tocom’s high. The metal was unable to trade above $12.40, but was supported by bargain hunters when the prices dipped down to the 100-day moving average of $12.34. In London the white metal edged higher to fix at $12.41, down 4 cents compared to the one of yesterday, to then rally sharply following the opening of Comex. Spot reached the high of $12.54, but failed to hold on to the gains. The upside was challenged another couple of times, but unsuccessfully. The market moved sideways on the upper side of the intraday range, but dipped down towards the lows shortly before the close. We believe that a sustainable break above the $12.50 next resistance level is necessary in order to allow silver to acquire further gains.

MKS Gold & Silver, Daily Report
By Lidia Nazarova

© OroyFinanzas.com

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