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.
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.
This morning’s opening bids showed a small recovery trying to get underway but gold only added $3.40 to start off the day at $1,678 while silver once again briefly turned negative and fell to $32.92 the ounce.
Precious metals prices headed lower this morning as the final trading session of the week got underway in New York. Yesterday’s “Fedspectations” turned down a notch as market participants had somewhat bigger news "fish" to fry this morning.
Precious metals started the trading week in mixed fashion with initial spot bids showing gold and silver prices marginally lower while platinum and palladium moved higher. The US dollar resumed its upward course this morning after the brief pause on Friday.