Gold spot prices opened with losses on the order of about $10 and near the support level that the $1,650 area is thought to be able to now offer. Silver dropped nearly 50 cents and started the midweek session out under the $30.50 mark per ounce.
Albeit gold did open about $2.50 higher in New York, yesterday’s enthusiasm levels were nowhere near detectable. We were confronted with abnormal concurrent headlines that observed gold trading at a five-month high and the DJIA closing above 13K for the first time.
Japan's 0.1% rate 'cut' surprised and rattled currency, bond, and metals overnight markets more than any of its previous currency market intervention did. The BoJ effectively ran out of rate-tinkering ammo with this 'all stops removed' accommodation.
Gold prices continued to hover near all-time record levels following the spectacular push by speculative funds on Tuesday. The $10 overshoot of the previous $1,265 pinnacle brought with it a rising and louder chorus calling for more of the same.
The ongoing decline in the precious metals complex continued overnight as a stronger dollar and a slightly lower euro coupled with losses in the Nikkei index conspired to keep sellers active and buyers less so.
Well, nobody expected an inquisition in...Spain, again. Yet, that is exactly what throngs of financial media reporters did following rumors of a Greek-style bailout package being prepared on behalf of the country by the IMF/EU teams.