Morning Gold Market Report The gold market saw a somewhat tight trading range during the second trading session of the week yesterday. However, gold might have been fortunate to hold around unchanged price levels yesterday in the face of slack US economic data, adverse currency market action and weakness in copper prices. On the other hand, definitive strength in platinum and palladium prices has probably provided gold and silver with some indirect support this week and that support looks to extend into the action today. In fact, the threat against platinum supply might be a primary focus today from South Africa, where some striking platinum workers are coming off strike and other workers are reportedly blocking access to a Lonmin facility, despite very heavy police presence. In the end, the primary bullish factor lifting gold to start today is news that the ECB is poised to ease, perhaps next month, but another contributing influence might have been seen from BOE suggestions that they are in no hurry to raise rates. Given the slackened global economic view, the Dollar is also showing some weakness and that has apparently provided some fresh buying interest into gold. In conclusion gold has managed to shift its focus from optimism off a risk on vibe yesterday to a focus today which seems to be stemming from easier monetary policy positions. Apparently gold has discounted news that gold holdings in derivative instruments fell by 68,274 ounces yesterday. Comex Gold Stocks were 8.061 million ounces down 96 ounces. A shift in focus toward has taken place with hopes of ECB easing and positive gains in Platinum Group metals also feeding into the bullishness seen earlier this week. We arent convinced that gold is a buy sitting in the middle of a current trading range of $1,315 to $1,277, but one has to give the bull camp credit for managing more gains, despite slack equities and ideas that the Euro zone economy remains weak enough to possibly need additional easing. Critical support moves up to $1,291.60 and resistance is pushed up to $1,304.50. The path of least resistance is pointing upward, but momentum isnt overly impressive.
Posted on: Wed, 14 May 2014 12:56:53 +0000
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