(OroyFinanzas.com) – Tocom opened with profit taking, forcing gold down to $685 where emerged buying propelled the prices up to $688 levels. During the European hours the same very quiet range bounded scenario prevailed with nothing really to report.
After the opening of the Comex division of the New York Mercantile Exchange the US retail sales came out to be slightly higher then expected. According to the Commerce Department the sales rose 0.7 percent in March, partially due to higher gasoline prices. The yellow metal tried to challenge the upside shortly after, but large selling orders hanging around $689 levels capped the market.
Another Commerce Department report stated that US business inventories were up 0.3 percent in February. February’s gain thus showed an increase inretailer stockpiles as consumer demand remained strong. This positive report triggered a sharp fall and the market did not wait for long before tumbling further down to hit $684 an ounce. Moreover, oil prices were not very supportive for the yellow metal, slumping below $63 a barrel as OPEC was reassuring regarding supply concerns and expected a lower demand. Struggling to sustain the $684 dollar mark, prices remained limited to a $1 range the rest of the afternoon. However, spot finally rebounded on renewed interest from investors and closed on the highs. We believe that gold has further upside potential if it stabilizes and consolidates above the $680 level.
Silver was also very quiet in Asia overnight, bounded by $14.00 on the downside and $14.15 on the upside. In Europe the white metal tried to break higher, but $14.10 seems for the moment to provide quit a firm resistance. The overnight range was however slightly extended on the downside after the opening of the NY trading session. Silver followed gold descent despite supportive copper prices, and slipped down to trade around the $13.95 level. We believe that silver needs to build a firm base above $14 in order to be able to head higher.
MKS Gold & Silver, Daily Report
By Moniah El Shikh
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