Morning Gold Market Report After choppy two-sided trading and some divergent action between gold and silver prices, the gold market managed to spend a surprising amount of time during Thursdays trade in positive territory. While US economic data on Thursday provided conflicting results, the gold market was seemingly able to rally into and through the US report window. With US Treasuries also forging gains yesterday, some traders might conclude that the US data was judged to be weak and that in turn would seem to confirm that gold remains in a position to benefit from soft US data, reduced Fed tapering fears and a choppy to lower US Dollar. On the other hand, the bear camp has to come away from Thursdays action somewhat discouraged, as technical damage from earlier this week and recent gains in the Dollar failed to yield a noted downside extension in February Gold prices. In the end, the trade seems to have come away from the latest sweep of US economic data with the idea that additional Fed tapering might be difficult directly ahead. It is also possible that the approach of the weekend is prompting some would-be bears to scramble to the sidelines rather than stay short gold in the face of escalating South African labor tensions. With two strikes underway in South African platinum facilities and the AMCU threatening additional strikes early next week, traders that are short gold might think twice about holding onto their positions over the weekend. On the other hand, gold and platinum havent exactly seen consistent support from supply-related threats and one gets the impression that the bulls will have to prove their case with an actual widespread shutdown of South African mining activity. Overnight the gold bulls were presented with news of higher gold production and a negative investment banker 2014 gold price forecast but that type of news has been rife of late. However, gold prices in Hong Kong closed higher and the trade might actually see some support from news that Indian gold jewelry exports for December declined by 30%, as that news shows the Indian imports restrictions are not having the desired impact. Indian regulations stipulated that 20% of imported gold must be turned around as exports and India showed almost a 50% reduction in 9 month gold jewelry exports, and therefore the import rules appear to have dramatically reduced exports. Comex Gold Stocks were unchanged at 7.809 million ounces.
Posted on: Fri, 17 Jan 2014 13:33:33 +0000
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