(OroyFinanzas.com) – Gold barely moved overnight and the market was quiet during the whole Asian session. As soon as London market opened the precious metal did two attempts to breach the $670 resistance but failed to hold above this level and tumbled towards the $665 critical limit.

Gold however rebounded after the opening of the Comex Division of the NY Mercantile Exchange following the release of the key-reports of the day. An economic data showed that US consumer prices advanced 0.4 percent in April on a continued rise in energy and food prices. These figures were however below the expectations and suggested that inflation was tempered and contained. The dollar slipped against the euro in reaction to the April core CPI advanceand US treasury prices were up. Consequently gold traded up amid this mixed bag of signals including the tamed inflation data and expectations for future US interest rate cut that might prompt investors to buy bullion. Prices tried to challenge the upside again, eventually reaching the high of$671.50 bid over an hour into the NY session. Spot spent the next two hours struggling to consolidate above the $670 but was too unstable and remained fluctuating either side of this key level. Easing briefly to fix at $668.25at the second London fixing, up $3.7 from the previous PM one, gold bounced back straight after and rallied up to $673.50.

Steady oil prices were supportive for gold, on deeper supply outages in Nigeria and OPEC declaration not to boost output before summer as requested by the International Energy Agency. OPEC officials said indeed that crude oil stocks were more than adequate to meet expected demand, ahead of the driving season, while admitting that gasoline stocks were low for this timeof year. Gold remained hovering on the top side of the intraday range the two last hours. We believe that the precious metal’s movement would continue to be mixed for the near future, with $675 as a resistance and$$665 a support. Meanwhile the rising geopolitical tensions continue to provide support to the precious metal, following the arrest in Tehran of a Washington-based academic suspected of ‘crimes against national security’.

Silver was rather lethargic and stayed in a tight range during the Tocom session. The white metal tried twice to consolidate above the $13.13 level in Europe but could not hold on to the gains and dipped lower prior to the opening of the NY session. When the New York market opened silver followed gold movements and slightly recovered to trade around the$13.15. One hour after spot edged 5 cents higher, supported by copper which was lifted by stronger than expected import data from China, the world’s top consumer of the metal and by nickel which pared its Monday’s losses. Prices continued to rise and faced some resistance around the $13.25 level due to profit taking. Like gold, silver remained hovering on the top side of the intraday range until the close. We believe that the white metal is likely to continue to trade within its $13.00-$13.30 range in the short-term

MKS Gold & Silver, Daily Report
By Moniah El Shikh

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