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After yesterday’s rally gold spent a calm Asian session – MKS

(OroyFinanzas.com) – After yesterday’s rally gold spent a calm Asian session, trading in a tight range. Prices came under selling pressure and dipped below the $660 technical level.

The yellow metal recovered later and settled above that level. In Europe prices were quickly pushed up to the $661 levels where buyers turned into sellers, forcing the metal to give away the gains. The downside was further extended to $659.30 before the first London fixing of $659.60. Gold was then fairly quiet, remaining sidelined and hesitating around $660 until lunch time. Afterwards buying interest took us a bit higher, but gold lacked impetus to rise strongly in the absence of clearer market triggers. Brent eased slightly from a 10-month high above $72 a barrel, as a strike in Nigeria failed to interrupt supplies from Africa’s top crude producer. We dropped over 3 dollars in less than half an hour during the Comex division of the New York mercantile exchange and subsequently fixed at $657.70 on the second London fixing, up $1.4 from the previous PM one.

No major US economic data was scheduled for today except the US petrol inventory. The weekly Energy Information Administration (EIA) report showed that US crude oil and gasoline stocks rose last week more sharply than expected, as the nation’s oil refineries slowed and imports rose. Commercial crude inventories rose 6.9 million barrels to 349.3 million barrels in the week end June 15, defying expectations for a 100,000 barrel build. As for gasoline inventories, they increased 1.8 million barrels to 203.3 million, versus expectations of a 1.0 million barrel build. According to the EIA, domestic refiners slowed their crude run rates by 359,000 barrels per day to 15.02 million bpd and imports rose by 650,000bpd to 10.79 million bpd. Following this stronger-than-expected data Brentfell more than $1 which limited gold upside. Indeed, prices remained weak the rest of the afternoon session and could not revisit the highs. It seems like gold is building a base above the $655 level, but does not yet have enough momentum to break beyond the $662-$665 resistance. We believe that in the short term the metal will be undergoing a period of consolidation and will remain range bounded with bargain hunters and physical investors offering a support. Another positive factor for the yellow metal is the existing tensions between trade unions and gold producers in the world’s largest gold producer South Africa. Market participants will be closely watching the initial jobless claims and leading indicators on Thursday for clues in the US dollar direction, as gold usually moves in the opposite direction with the dollar.

Silver was also trading in a tight range during the Tocom trading hours. Selling put pressure on the metal and took the market below $13.30. Bids however enabled prices to move higher by the end of the session. In Europe the grey metal was hovering on both sides of the $13.30 key level and fixed later at $13.34 an ounce. Copper gained ground, driven by strike threats in the world’s largest copper miner, Chile’s Codelco. Workers haveset a strike vote for June 27th, barring an improved wage offer from the company that could be voted on before then. If the negotiations fail,copper prices could drift higher and that would in turn support silver. During the Comex session silver followed the same pattern as gold and plunged to trade down to $13.20. The last hours saw silver fluctuating between $13.20 and $13.30. We believe that spot will remain limited to$13.40 on the upside while $13.00 continues to provide a support

MKS Gold & Silver, Daily Report
By Moniah El Shikh

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