Gold remained hovering around Wednesday’s closing levels of $672-$673 – MKS

( – Gold remained hovering around Wednesday’s closing levels of $672-$673.During our time zone the metal had no clear direction and failed to breach the $674 level. Spot fixed at $673 an ounce on the first London fix, up $5.25 from the previous AM one.

Today gold was once again boosted by firmBrent and a weaker dollar that traded near record lows against the euro.After the opening of the New York mercantile exchange initial joblessclaims report was released. The number of new claims filed for US jobless benefits fell unexpectedly in the latest week, dropping 8,000 to the lowestlevel in two months. Labor Department said that initial jobless claims forstate unemployment benefits fell for the second straight week, dropping to301,000 for the week ended July 14 from an upwardly revised 309,000 claims the prior week. Economists were expecting initial claims to rise slightlyto 311,000 from the original reading of 308,000 in the week ended July 7.

Gold was however supported by Brent crude, climbing above $77 a barrel as a consequence of yesterday’s surprising drop in gasoline stocks in the UnitedStates and heightened supply concerns in Africa. Subsequently we breached the $675 resistance, but that was short lived. Following the second Londonfixing of $674.50 where buying became apparent another US economic reportcame out, showing that US June leading economic indicators fell 0.3 percentto 137.5. After many attempts to breach durably the $675 prices finallywere able to sustain that level following the release of the Philly Fedsurvey. The report showed that factory activity in the US Mid-Atlanticregion grew much slowly than expected in July while price pressure alsoeased. The Philadelphia Federal Reserve Bank said its business activityindex slid to 9.2 in July from 18.0 in June, while economists had forecasta reading of 13.3. As a result we eventually reached the high of $677.40and closed in this area. We believe that in the short term a breach of $678would accelerate the upward movement.

Silver lost some ground after the close of $13.20 in NY, but held firm above $13.20 despite USD/YEN weakness. In Europe prices were sidelined inthe beginning, but then drifted higher to fix at $13.25 an ounce. Duringthe Comex hours prices firmed gradually to trade just below the $13.30resistance. We believe that silver is likely to remain well supported below$13 while the $13.30 provides a resistance.

MKS Gold & Silver, Daily Report
By Moniah El Shikh


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Marion Mueller

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