Morning Gold/Silver Market Report The gold market initially saw a fresh lower low for the move on Wednesday, but the trade was able to reject that pulse-down off developing weakness in the Dollar and reports of bargain-hunting buying. Some of the initial selling in gold this week was the result of Ukraine cease-fire talk but with press outlets reporting ongoing fighting after the official cease-fire announcement, some safe haven interest remains in play. Some traders suggested that favorable US economic data over the last week increased the prospects of hawkish Fed dialogue ahead, and that started gold and silver out on a negative track this week but that bearish angle is temporarily countervailed by the anticipation of the ECB meeting today. Gold and silver appeared to see some bargain hunting buying for the first time since the August 21st to August 26th timeframe, and that buying might have been partly the result of a reversal in the Dollar and some might have been the result of ideas that $1,263 in December gold might be seen by some as a value zone. Adding into the positive tone this morning is reports of bargain-hunting buying from China overnight. In a negative note the worlds largest gold ETF saw their gold holdings fall by 2.69 tonnes on Wednesday, and those holdings have now declined for a third straight session and are down to their lowest holdings level since June 27th. With the safe haven angle deflating off the Ukraine, the bull camp in gold and silver might need to see a period of risk-on economic optimism to foster a bounce in prices. Silver derivative holdings declined by 255,312 ounces and that might temper some hope that silver was poised to step back into the investing limelight.
Posted on: Thu, 04 Sep 2014 12:06:09 +0000
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