(OroyFinanzas.com) – Gold did not move after Wednesday’s NY close and spent a fairly quiet Far East session. Tocom saw the precious metal trading either side of $680 to finally settle on the lows under selling pressure. In Europe the yellow metal hit the high of $680.20 before easing to fix at $677.85 on the first London fix, down $8.65 from the previous AM one.
After the opening of the Comex division of the NY Mercantile Exchange prices edged lower. The weakness was accompanied by the release of mixed US economic data. The US trade balance deficit widened by a more-than-expected$63.9 billion (instead of the $60 billion estimated) in March, on increasing imports in oil and in industrial supplies and materials. The US import prices rose by a larger-than-expected 1.3 percent in April. TheLabor Department report highlighted inflation risks easing concerns of theFederal Reserve cutting interest rates in the near future. Regarding the last report, the US dollar benefited from the 9,000 fall in US jobless claims last week, while analysts were expecting a rise of 10,000. US dollar firmed after the data, sending the precious metal further down. Prices kept progressively losing ground in the absence of any buying interest. Eventually the $670 support level was breached and stops triggered, which pushed spot to$664.50. The yellow metal settled only a dollar above thelows of the day. We believe that it is crucial for gold to sustain the $665 level in order not to undergo further correction.
Silver also had a subdued trading session inAsia and could not get above $13.43 while fairly well supported below $13.30. During our time zone the white metal followed gold movements, reaching the high of $13.35 before slipping to fix at $13.29. Throughout the NY trading session it was a one way downside road, which eventually took the prices down to $13.02. We believe that if the $13 psychological support fails to hold, silver might revisit $12.50 level
MKS Gold & Silver, Daily Report
By Moniah El Shikh
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