(OroyFinanzas.com) – Despite the narrow range gold had a two way trading session in Asia today. The metal extended the overnight low to $653.50 in Europe howeverbids around that level enabled the metal to fix higher on the first London fixing.

The afternoon session was quiet with nothing really to report, risk aversion and uncertainty capping the market. After the opening of the Comex division of the NY Mercantile exchange prices were propelled slightly up. Supply concerns kept the price of Brent crude stubbornly around $71 abarrel today, as workers at Nigeria’s state oil company began an indefinite strike over welfare issues yesterday and threated to target oil output if their demands were not addressed within days. Prices remained dully hovering above the $655 level the major part of the session, despite the US April existing home sales data, which fell by 2.6 percent, the lowest rate since June 2003. We believe that gold will remain focusing on the US dollar and crude for short term price direction. The yellow metal should findsupport above the key $650 level where buying orders are accumulated

Silver was also traded within a tight range in the Far East with the entire session being very quiet. Mirroring gold’s upward in Europe the white metal recovered after a drop down to $12.81. During the Comex trading hours silver failed to regain the $13 level and was fluctuating below it.We believe that silver needs to undergo a period of consolidation before being able to sustainably get above the $13 level, while $12.70 acts as a major support on the downside.

Please note that markets will be closed on Monday due to Memorial Day in US and Spring Bank Holiday for UK, so there will be no report on that day.

MKS Gold & Silver, Daily Report
By Moniah El Shikh

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