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Gold was bounded by a two dollar range below $652 during the entire Tocom session – MKS

(OroyFinanzas.com) – Gold was bounded by a two dollar range below $652 during the entire Tocom session. London opened with profit taking, forcing gold down to$648.80 where emerged buying propelled the prices up to $650 levels.

Prices came under direct selling pressure after the opening of the Comex division of the New York mercantile exchange and fell sharply. A firmer dollar versus the euro reduced investor appetite for the metal, as a strong US currency makes gold costlier for holders of other currencies. Weaker Brent prices and expectations of higher interest rates around the world also dampened sentiment.

The European Central Bank said today that gold and gold receivables held by euro zone central banks fell by 45 million euros to179.866 billion euros in the week ending June 22. Prices remained constantin the afternoon as market participants were awaiting for the release of US data due later in the day. After the second London fix of $647 the figures came out. US consumer confidence fell further than expected to a 10-month low in June as worries about jobs grew. Consumer sentiment slid to 103.9from an upwardly revised 108.5 in May. Another US data showed that sales ofnew US homes fell 1.6 percent in May to a lower-than-expected level. New single-family home sales fell to an annual rate of 915,000 from a revised rate of 930,000 in April while analysts were expecting sales to fall to a 925,000 unit pace from a previously reported rate of 981,000 units inApril. Meanwhile Brent prices continued to fall as traders anticipated this week’s US government inventory report to show an increase in crude oil stocks and refinery usage. At the end of the day the metal seemed to have stabilized and remained hovering around the $644 levels for a while until renewed selling interest took it further down. Prices bounced back to the$643 levels before the close of NY. We believe that it is important for gold to hold the 200-day moving average of $640 in order not to experience further correction.

It was an incredible day for silver. The white metal was rather lethargic in the Far East, bounded by $12.83 on the downside and $12.91 on the upside. Then during the early European hours the grey metal followed the same pattern as gold and extended the overnight low to $12.78. Subsequently spot bounced back to fix at $12.85. However prices could not hold on to the gains and stops were hit below $12.70 followed by $12.50 and$12.30, eventually bringing us to the five-month low of $12.16 during theComex hours. Prices bounced back to the $13.30 levels before the close. We believe that if gold holds its support silver should be able to do the same with $12.20.

MKS Gold & Silver, Daily Report
By Moniah El Shikh

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