Morning Gold/Silver Market Report All things considered, the gold market held up fairly impressively in the wake of another beating in the energy complex yesterday. However, gold and silver prices this morning have not distinctly benefited from fresh signs of ongoing Russian financial turmoil, signs of strong Indian gold import volumes and from fresh Chinese easing through relaxed lending rules. On the other hand, was gold clearly short-term overbought from its rally over the past two weeks, and therefore some corrective action in gold is to be expected especially if the overtly dominating deflationary threat calms down. While stocks are marginally higher to start potential safe haven prospects from Russia remain in play, as the Russian Central Bank was forced to raise interest rates overnight to battle the fierce slide in its currency and a rapid increase in domestic inflation. News that European banks only took half of the funds offered at cheap rates overnight, suggests that the European banks remain in good shape financially, but that loan demand remains slack and that could be seen as another deflationary signal. In a minimally supportive development overnight, the SNB said they have no intention of selling gold in the wake of the recently rejected referendum that would have required gold matching in currency operations. The SNB also indicated that gold remains an important part of Swiss currency reserve holdings. Another story that seems to have been discounted this morning is reports of strong Indian tax revenues on rising gold imports. For gold to recover and rise toward another higher-higher today, might require a slide in the Dollar below 88.00, soft US Jobless Claims data, or fresh new lows in oil prices. The worlds largest gold ETF saw their gold holding rise by 2.99 tonnes on Wednesday for a second straight daily increase, the first time that has occurred since mid-August.
Posted on: Thu, 11 Dec 2014 13:13:08 +0000
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