(OroyFinanzas.com) – Due to a sharp fall in USD/JPY overnight, Tokyo market opened with goodselling interest. However gold managed to hold above $670 and closed thesession where it opened.
During our time zone the yellow metal hoveredaround the $672 levels before fixing at $674.15 on the first London fix.Subsequently we jumped up to challenge the upside, but offers at the $675levels capped the market. Selling pressure persisted after the opening ofthe Comex division of the New York mercantile exchange. Although noeconomic data was scheduled for today, the market kept losing ground, amidweaker Brent prices. Indeed, crude oil fell towards $72 a barrel asconcerns about credit markets resurfaced. Apart from the US factor,analysts said there were no major fundamental factor dragging Brent priceslower.
By the late afternoon we broke below $670 but that was short livedas we bounced back quickly afterwards. Then it was a battle to sustain the$670 and the metal ended the day on a weak note. We believe that gold willcontinue following crude oil fluctuations and remains supported by the25-day moving average of $665, while $675 acts as a resistance.This week the following US economic data will be awaited: Productivity,Unit labour costs, FOMC announcement and consumer credit on Tuesday,whoelsale credit on Wednesday, initial jobless claims on Thursday, tofinally end the week with the release of import prices and budget balance.
Silver did not break out of its current range overnight, but sustained the$13 levels despite the selling on Tocom. In Europe the grey metal gainedsome ground and hit the peak of $13.14 before dropping down to the $13level during the Comex first trading hours. Fresh signs of economic troublein the United States pushed copper down to five-week lows today, whileanalysts expect strong demand from China to support the metal. Consequentlyspot did a sharp fall, extending the low to $12.95 per ounce by themid-afternoon. Prices finally settled on the lower side of the intradayrange. We believe that it is important for silver to regain the $13 levelin order to get a clearer direction.
MKS Gold & Silver, Daily Report
By Moniah El Shikh