Little interest in gold overnight market – MKS

(OroyFinanzas.com) – There was very little interest in gold overnight. The market was constantly offered by the general public, but that was absorbed by fund buying, leaving the prices capped within a two dollar range.

As soon as London market opened the metal began to slip and fixed subsequently at $652.80 on the first London fix, up only 5 cents from the previous AM one.The International Energy Agency said today that world oil demand will rise more quickly than previously thought this year, adding weight to consumer nations’ call for more OPEC oil. However the metal did not break out of its current range. Market participant were unwilling to make big moves before key financial data (CPI figures) from the United States later this week. In the absence of stimulus from other markets, gold remained in a delicate equilibrium, trying to hold the $650 key technical level after the opening of the Comex division of the New York mercantile exchange. Brent, a usually supportive factor for the precious metal, slid towards $68 a barrel as concerns about inflation and higher borrowing costs dominated financial markets and as US gasoline stocks increased.

Regarding geopolitical tensions which also tend to support the metal, Iranian foreign minister Manouchehr Mottaki said that Iran will make the United States ‘regret’ its detention of five Iranians in Iraq since early this year. It seems however that that was not enough to keep prices above $650. Indeed they dipped to fix later at $647.25 an ounce, down $3.05 from the previous PM one. Prices fell eventually down to $646.80 on the back of a firmer dollar, which rose towards last week’s two-month high versus the euro and hit 3-1/2-monthpeaks against the Swiss franc. Spot however rebounded shortly after and spent the rest of the afternoon session struggling to regain $650. We believe that we could experience a further correction down to the $640level if the $645 first support is not sustained.

Silver was quasi lethargic in the Far East, bids taking prices up to $13.23-26 where they seemed to face resistance. During the early European hours spot followed the same pattern as gold, slipping gradually and fixing at $13.15 an ounce. Nickel dropped by more than 6 percent asNickel inventories were up again and copper shed more than one percent as Chinese imports fell in May, analysts said. Silver continued its descent during the Comex trading hours, but once the low of $13.00 reached, buying interest finally enabled the metal to rebound two hours before the close. We believe that in the short term range trading will prevail, unless the$13 psychological support is breached for good.

MKS Gold & Silver, Daily Report
By Moniah El Shikh

© OroyFinanzas.com

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