CME Group declared a force majeure at one of its New York precious metals depositories Monday, run by bullion dealer and major coin dealer Manfra, Tordella and Brooks (MTB), due to “operational limitations” posed by Hurricane Sandy.
Spot market gold bullion hit a five-week high at $1,625 an ounce during Friday morning's London trading, on course for a weekly gain that would see the pattern of alternating up and down weeks stretched to week number eleven.
Gold rose $3.80 or 0.23% in New York yesterday and closed at $1,666.10/oz. However, there were more peculiar goings on in the gold market which saw one massive sell order knock prices lower, prior to gold gathering itself and moving higher.
The London Metal Exchange said Tuesday that BOCI Global Commodities (UK) Ltd.,has been approved for category two associate broker clearing membership and will become the first Chinese member of the exchange.
A flurry of weak economic news lately is weighing heavily on copper's price. Recently, the red metal dipped to its lowest since July 25 after a release of weak global manufacturing numbers and concern over global growth.
An overnight dip to the $1,490 area reignited perceptions that whatever the scope gold's recent falling away from the $1557 level might be, the decline might not draw to a close at least until some support is tested nearer $1,480.
Stocks are higher in Europe after gains in Asia despite losses on Wall Street yesterday. Gold and silver are showing tentative gains after 1% declines yesterday. Gold is particularly strong in yen terms as the yen has weakened against all major peers.
The sharp decline in oil, along with an initial 0.61% gain in the US dollar on the trade-weighted index made for a wobbly start in the precious metals' complex. Gold spot prices opened with a loss of $12.60 per ounce and silver with an 87-cent drop.