Another wild ride for gold unfolded over the past two-and-a-half trading sessions as sellers and bargain hunters played tug-o-war with the market’s price rope and sent the yellow metal over a relatively wide spectrum of quotes.
The new trading week started with small losses in the precious metals complex despite a 0.14% drop in the US dollar and a near-$1 advance in crude oil. Small-scale profit-taking was cited after gold market players attempted a test at the $1,680 resistance area.
Gold’s last/best chance to try for the $1,650 target ahead of the Fed today comes from a lower-than-expected US durable goods orders figure and the flicker of a QE3 hope that such a metric might give rise to among speculators.
The worst month for gold prices in 30 years was suddenly followed by the best daily climb since last August on Friday, the first day of the new month. The principal catalyst for the $66 upward move in bullion was the unexpectedly dismal report on May’s US job creation activity.
The new trading week started off on a downbeat note in commodities, equities, and a crisis-beset currency across the Atlantic. Risk assets headed lower on a combination of anxieties surrounding global economic expansion, and persistent systemic troubles in the euro zone and China.
The metals complex opened higher this morning as the pre-long weekend book-squaring ritual got underway and as players awaited Mr. Bernanke’s words from Jackson Hole. Gold advanced $5 to $1,660 while silver rose 20 cents to $30.70 per ounce.