(OroyFinanzas.com) – Gold gained some ground after Tuesday’s close of around $685.00, but remained very subdued in Asia. During the early European hours the precious metal remained fairly quiet, trading within a narrow $685-687 range and remained steady.

It fixed at $686.50 an ounce, up 60 cents from the previous AM one. After the opening of the Comex division of the NY Mercantile Exchange gold could not hold on to the gains it made during the morning session as selling interest forced the prices down to the $683 level. Gold kept declining and subsequently slipped further. Ahead of theUS Federal Reserve meeting, which will set near-term direction for the US dollar and so influence gold prices, market participants were cautious to take on large positions. Gold was not helped by oil prices either, which pulled back after a rise in crude stocks in top consumer the United States. According to a weekly government data, US crude oil stocks increased by 5.6million barrels, instead of the 400,000 barrels build expected by Reuters poll of analysts, erasing an earlier rally fuelled by repeated attacks in Nigeria’s oil industry.

One hour and a half before the close of the NY session, bearish sentiment for the precious metal and a slip over a dollar in Brent triggered a fall below the $680 support. Gold hit the low of $676.00 an ounce, but rebounded rather quickly. The US Federal Reserve interest rate decision that came out after the NY close showed that the interest rates were kept unchanged, at 5.25 percent. We believe that gold is likely to trade sideways within the $680-691 range in the short term,with geopolitical tensions between Iran and the West remaining a supportive factor for the precious metal.

Silver was calm in the Far East, trading in a narrow range above the$13.47. During our time zone, the same scenario prevailed and prices hovered around the $13.50 dollar mark. Silver followed gold’s fall during the NY session, eventually edging down to $13.21, but managing to rebound above the 100-day moving average of $13.30 by the settlement. We believe that silver will remain range bounded, with $13.60 providing a resistance and $13.30 a support.

MKS Gold & Silver, Daily Report
By Moniah El Shikh

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