Friday, June 22, 2012

Gold and Silver fall out of bed


 
 and for those who love their ratio action


From kitco.com

Original source

Comex gold futures prices ended the U.S. day session sharply lower and at a fresh three-week-low close Thursday. The key “outside markets” were fully bearish for the precious metals Thursday--the U.S. dollar index posted strong gains, while crude oil prices were sharply lower and hit a fresh 8.5-month low. It was also a raw-commodity-market-bearish "risk-off" day in the market place Thursday, following downbeat economic data coming out of China overnight and after Tuesday's FOMC report that showed an anemic U.S. economy. Gold bears also gained fresh downside near-term technical momentum Thursday. August gold last traded down $48.00 at $1,567.80 an ounce. Spot gold was last quoted down $39.50 an ounce at $1,567.75. July Comex silver last traded down $1.484 at $26.915 an ounce.

The market place was disappointed with the results of the U.S. Federal Reserve’s Federal Open Market Committee meeting that ended Wednesday afternoon. While most expected the “Twist” operation would be extended, the significantly more downbeat assessment of the U.S. economy from the Fed was a bit of a surprise and sent fresh shudders through the market place. Then overnight China announced weaker manufacturing activity to further depress the market place.

The FOMC and China manufacturing news have, for the moment, overshadowed the festering European Union sovereign debt crisis. Spanish bonds that were auctioned Thursday did see EU era record-high yields fetched. It won’t be long before the EU debt crisis is back on the front burner of the market place—and that could be just what the doctor ordered for the gold market bulls. There has been fresh safe-haven buying interest surface in gold recently when the EU debt crisis escalates.

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