The initial market trend in gold and in silver quickly reversed with statistics on the New York area's manufacturing activity for June. The index fell to below the zero level (-7.8) this month, from +11.9. Polled economists had expected improvement.
A further decline in crude oil prices conspired to drag most of the commodities' complex to lover value ground as the new trading week began. Precious metals lost chart altitude levels as well, despite a minor loss recorded in the US dollar index.
Tired gold bulls went to work this morning but were unable to lift the yellow metal as the US dollar made further progress to the upside in the wake of on-going perceptions that a Greek default remains all but inevitable.
Spot gold dealings started the New York session with a small loss of $2.30 per ounce and the yellow metal was quoted at $1,535.30. Gold remained tentative for the first two hours of trading and oscillated between the $2+ losses and an equal-sized gain.
Precious metals opened under selling pressure as the midweek trading session got underway this morning. Some early losses in oil and in gold were reversed following reports that the OPEC ministers failed to reach a consensus on production quotas
While precious metals initially opened mixed as the US dollar refused to succumb to selling in the wake of rising perceptions that the Fed might "give," they did recover footing and push to higher price ground in the first couple of hours of trading.
Gold prices turned higher following the jobs report, while silver narrowed its earlier losses to only 44 cents and was quoted at $35.91 per ounce. Platinum and palladium did not show too much movement in the wake of the data.
The metals' trade (as well as a host of other speculators) was keenly focused on the day's release of US initial jobless claims numbers as well as tomorrow's overall US employment statistics courtesy of the Labor Department.
The new, abbreviated trading week got off to a mixed start in the precious metals' complex. Gold fell $4.00 on the open and was quoted at $1,535.10 and silver added 38 cents to open at $38.45. The stellar performance, however, came from noble metals.