Morning Gold Market Report The short-term focus of metals trading appears to be locked onto the ebb and flow of US economic data, as gold actually saw a $5 rally off the news of a decline in private layoffs Thursday, but then gold prices fell back in the wake of the rise in Initial Jobless Claims. In short, gold is behaving like a physical commodity market in need of positive economic news flow and that in turn makes the US Non-Farm payroll results even more important. While gold waffled around both sides of unchanged for most of Thursdays trading session and ultimately closed moderately lower, it didnt seem to be overly pressured by the fresh upside breakout in the US Dollar, but the action in the Dollar could hold back gold somewhat in the face of positive US data later this morning. Gold might have seen some lift from news that the Iraqi central bank has bought over 60 tons of gold over the last 2 months. At least to start, the bull camp looks to be in favor, but we get the sense that the gold market is banking on a risk on vibe from the jobs report. Remember gold is a physical market in need of solid physical demand and for Indian and Chinese gold demand to improve probably requires positive US economic leadership. Gold derivative holdings declined by 24,266 ounces overnight to stand at 49.2 million ounces. Comex Gold Stocks were 7.808 million ounces up 2,992. Stocks have increased 13 of the last 20 days. Comex Gold stocks are at their highest levels in the past 10. Seasonal patterns are apparently pointing upward in gold directly ahead, but we suspect that the seasonal track will be overshadowed by classic fundamental readings. At least to start the bull camp looks to have an edge and there might be little in the way of resistance seen until the $1,300 level and support moves up to $1,281.90. The market might bounce today but we arent sure gold has the fundamental story to completely throw off the liquidation pattern seen since the middle of March.
Posted on: Fri, 04 Apr 2014 13:01:06 +0000
Trending Topics
Recently Viewed Topics
© 2015