(OroyFinanzas.com) – Gold opened above $660 on Tocom but got capped around $662.50 per ounce by profit taking. In Europe the very narrow range above $660 prevailed. The yellow metal was helped by Brent crude riring above $71 a barrel, setting 9-months high, on worries over oil producer Iran’s dispute with the West over its nuclear work.
Iran’s president Ahmadinejad said Iran was close to achieving its ‘ultimate goals’ and accused the west of trying to stop Tehran’s nuclear programme in order to reduce its influence in the world. Gold fixed at $661.50 on the first fixing, up $2.20 from the previous AM one. When the Comex division of the NY Mercantile Exchange opened, prices came slightly off before the release of mixed US economic data. The reports showed weaker-than-expected US April durables goods (up0.6 percent instead of the 1.0 percent forecast by Wall Street economists in a Reuters poll) while US jobless claims rose by 15,000 the latest week.
Gold continued its battle to hold the $660 but selling forced the prices further down. Spot however rebounded rather quickly and remained on a fragile equilibrium during 2 hours before retreating again, weighed upon by a slightly stronger dollar against the euro and by solid new home sales data. US April new home sales rose by 16.2 percent, the sharpest climb in fourteen years, boosting optimism about economic growth and corporate profits. One hour later spot suddenly tumbled, with numerous selling orders eventually pushing prices down to the $652 levels. Gold ended the trading session on the lower side of the intraday range. The precious metal seems to be looking for a clearer direction and we think that geopolitica ltensions between Iran and the West as well as crude oil prices will remain supportive.
Silver firmed after the market closed Wednesday with the prices reaching a peak of $13.06 and seeming to find support around the $13 dollar mark. In Europe the grey metal was hovering on both sides of the $13.05level. Despite this apparent solidity silver tracked gold in its descent during the Comex session and fell sharply by the late afternoon. We believethat today’s collapse could generate further long liquidation in the near term, with $12.70 acting as a major support on the downside.
MKS Gold & Silver, Daily Report
By Moniah El Shikh
© OroyFinanzas.com