Following last week’s losses of 0.50% and 2.5% respectively, gold and silver started the final full trading week of the year on a muted note. Thinning participation and year-end book-squaring have begun playing a more significant role.
US Rep. John Boehner, speaker of the House of Representatives, received nearly twice as much financial support from donors tied to the energy sector than did the next-closest recipient, a report from the National Wildlife Federation finds.
This morning’s opening in New York brought with it some modest selling by participants ahead of the US Labor Department’s August jobs data. The principal take-away number was the decline in US unemployment to 8.1%.
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 final trading session of the week opened higher in metals as participants continued to bet that Mr. Draghi’s words will translate into action and that the GDP numbers will be the final motivating factor for the Fed to take action next week.
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.
US gold futures continued to weaken on Wednesday and Thursday, falling 0.9% to $1,565.3, and underperformed the broader markets. Next week, the events to watch include Bernanke's testimony to Congress and the E17 group meeting.
Spot gold fell to lows near $1,587 and then opened at $1,596, down $7 while silver touched $27.25 per ounce overnight but opened at $27.52. Once again, the US dollar added a few small steps to yesterday’s upward march and reached 82.85 on the index.
Friday’s EU news lifted gold prices in a hurry but it appears that the $1,600 resistance level proved to be…resistant to further assaults for the time being. The yellow metal started the abbreviated trading week in profit-raking mode as did the rest of the precious metals’ complex.