(OroyFinanzas.com) – 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 the yellow metal turned around.
Spot eventually slipped down to $687 level and closed the Far East session on the lows. During the early European hours the down side was extended by further five dollars, but the precious metal managed to rebound on some emerged buying interest and fixed at $687.25 on the first London fixing. From there until the opening of the Comex divisionof the New York Mercantile Exchange the yellow metal remained sidelined within the $687-685 range. The primary data out in the first minutes of NY trade was slightly worse than expected. The US initial jobless claims for the week ended on the 14th of April stood at 339,000 verses 323 thous and anticipated. The claims for the prior week were also upwardly revised.
Another wave of profit taking hit gold after the data. The metal once again failed to hold the $685 technical level, but this time follow though selling took the market all the way down to $679.30. Prices managed to recover back above the $680 level by the second London fixing, while the US leading indicator index rose 0.1% in March as projected. The precious metal then spent the last three hours of trade very quietly hovering on the bottom side of the intraday range. We believe that it is important for gold to sustain the $680 level, if not, we might see further correction on the downside.
Silver also initially tried the upside on Tocom, but then followed gold 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 early European hours. Buying emerged below $13.70 per ounce, which helped the white metal to rebound and fix at $13.8350 in London. The recovery was short lived though as after the opening of the NY trading prices gave away all the gains and eventually plunged to $13.55. Subsequently the market went very quiet with spot hovering in a narrow range below $13.65 level and firming slightly into the close. We believe that silver will remain bounded by a wide $13.50-14.00 range in the short term before a clearer direction is established.
MKS Gold & Silver, Daily Report
By Lidia Nazarova
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