Gold was little active in the Far East, hovering on both sides of $651.50 – MKS

(OroyFinanzas.com) – Gold was little active in the Far East, hovering on both sides of $651.50. Selling around $652 capped the market while bids were seen below $651. In Europe the precious metal was weak in the beginning of the trading session, but then started to gain ground.

We fixed at $652 an ounce on the first London fix. When the Comex division of the New York mercantile exchange opened spot was already trading two dollars higher. Today’s challenge was to regain the $655 level and consolidate above it, but in the absence of major economic indicators we remained trading in a range. Dollar strength against major European currencies weighed upon prices and limited gold upside, as a stronger dollar makes bullion more expensive for holders of other currencies and reduces its appeal as an alternative investment. Regarding gold supportive factors, Iranian interior minister said today that ‘more than 100 kg of enriched uranium materials have been delivered to storages’ adding tensions to West-East diplomatic relations. Geopolitical tensions combined with intensifying strikes in World’s top oil exporter Nigeria after talk’s failure helped Brent to remain around $71 a barrel and so gold to sustain the $650 levels. The afternoon session was deadly quiet with nothing really to report. Spot fixed at 652.85 on the second Londonfix and the market stagnated below $655 the rest of the session. We believe that range trading will prevail unless the precious metal is able to break above the 100-day moving average of $665 or below the $645 support.

Silver was almost unchanged after yesterday’s close of $13.07. Prices had no clear direction during the Tocom trading hours. The metal spent aquiet AM session to then ease in the afternoon, but buying interest enabled it to recover. During the early London hours silver followed gold uptrend and fixed at $13.155. Copper was range bound as selling pressure from weaker Chinese copper imports was balanced by strike threats at mines. The grey metal began to drop by the mid afternoon and settled on the lower side of the intraday range. We believe that silver needs to break out of a range bounded by the 200-day moving average of $13 on the downside and 50-day moving average of $13.30 on the upside in order to get a clearer direction.

MKS Gold & Silver, Daily Report
By Moniah El Shikh

© OroyFinanzas.com

About the Author

Marion Mueller

Be the first to comment on "Gold was little active in the Far East, hovering on both sides of $651.50 – MKS"

Leave a comment

Your email address will not be published.


*


mentioned in: