(OroyFinanzas.com) – Gold opened just below Monday’s NY closing levels in Asia, but in the absence of any follow through buying prices were limited to $690.30 per ounce on the upside.

Due to the emerged long liquidation from the general public shortly after Tocom opening the yellow metal slipped down to $687 levels and remained on the bottom of the Far East range until the close. In Europe the precious metal further eased until the low of $686.30 was hit by mid-day. The metal however managed to rebound and fixed at $688 on the first London fixing, up 0.75 from the previous AM one. After the opening of the Comex division of the New York Mercantile Exchange US economic data came out to be better than expected. The pace of US home construction rose to 1.518 million units in March verses 1.495 anticipated, with an increase in building permits of 0.8 percent. The overall March consumer prices stood at 0.6 percent as projected, while the so called core prices edged up by a slimmer than estimated 0.1 percent.

There was no immediate reaction from gold, but it eventually climbed higher with prices extending the overnight peak to $690.80 per ounce. Profit taking however did not allow the precious metal to sustain the gains despite slightly firmer crude after a leak on a Canadian pipeline to the United States and expectations of further drop in US gasoline stocks. Subsequently US industrial production came out to belower than forecasted. A Federal report showed that that was due to a sharp decline in utility output fueled by cold weather. The yellow metal could not attract enough buying interest which could propel it higher and remained bounded by a narrow range below $690 for the last couple of hours of a very quiet NY session. We believe that after a period of consolidation gold might be heading towards the $700 main target.

Silver spent the entire Far East session hovering in a narrow range above the $14 level. In Europe the white metal became choppy and volatile. Selling pressure pushed the prices sharply below the $14 support level several times, with the dip every time followed by a recovery back abovethat level. Prior to the London fixing spot plunged down to $13.89 and half an hour later the metal fixed seven cents above the low. The grey metal then spent the whole NY trading session plunging down to $13.90 levels and recovering back up to 14.05. The prices finally did manage to stabilize above the 14 dollar mark as copper hit new highs on supply worries. We believe that silver needs to undergo a period of consolidation before the necessary momentum to head higher could be acquired.

MKS Gold & Silver, Daily Report
By Lidia Nazarova

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