Morning Gold/Silver Market Report The gold market failed in the wake of renewed liquidation pressure in crude oil prices yesterday. The combination of weaker than expected US Existing Home Sales results, no forward movement by Russian officials on a financial solution to their crisis and technical damage on the gold charts clearly leaves the bear camp with an edge in the precious metals complex. While some corrective action in the Dollar following a new high yesterday provided some cushion for gold prices, a large number of positive US economic readings later today might be capable of thrusting the Dollar right back into new high ground. While a story overnight has downplayed the prospect that Russia will liquidate gold reserves to cushion its currency decline, renewed fears of slower growth in China and a decline in gold derivative holdings overnight generally leaves the fundamental tilt in favor of the bear camp. Expectations for a +4.3 US GDP figure and estimates of a 3% gain in US durable goods should lift the Dollar again but it is possible that hopes of a fresh risk-on vibe will be able to countervail the negative currency impact in the silver market.
Posted on: Tue, 23 Dec 2014 12:54:13 +0000
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