This week’s final trading session opened with the precious metals turning lower across the boards. Gold slipped to within $3 of the $1,600 mark once again overnight and it traded with a loss of $10 per ounce at $1607 in New York at last check.
The fourth quarter began with modest losses in precious metals as well as the US dollar and the euro this morning. Spot gold started the new month with a $3 loss and it was quoted at $1,768 per ounce in New York. Silver fell 20 cents to open near $34.31 the ounce.
Gold prices broke to under the pivotal $1,700 mark overnight, and did so despite a slightly weaker US dollar, despite a firmer euro, but alongside almost 1% weaker crude oil values. The decline was partially attributed to an overall slide in commodities.
Proving for the nth time that what happens in China is a pivotal impact factor to the commodities’ space, the most recent developments in that country sent base and precious metals prices, along with most global equity markets, lower overnight.
Gold prices rallied by more than 2% on Thursday and by nearly 1% early this morning as the US dollar appeared to slow its upward progress on the trade weighted index. Nevertheless, the dollar – trimmed gains and all – was still up for a 15th day in a row in pre-market action.
The final trading session of this week started with a “euro-bang,” as the bulls were emboldened by the surprise overnight announcement that the EU leadership has agreed to recapitalize certain banks and that a single supervisory banking agency might be created.
Precious metals started the new week with mixed results this morning as the euro remained steady around $1.235 but remained at risk of sell-offs and as crude oil advanced by less than 1% on supply worries.
Gold moved $10 higher ahead of the ECB rate announcement and it once again neared the Monday high. Silver added $30 cents and traded just above the $35 level. Market participants continue to target the $1,800 and $35.50 closing levels in the gold/silver duo.
The big surprise this morning was that the US jobs figures…surprised to the upside, and then some. Gold prices promptly fell by as much as $18 (all the way back down to $1,682) in the wake of the report that showed US unemployment falling to 7.7%.