London Bullion Report
Precious metals open lower as risk aversion returns
Wed, Aug 19 2009, 08:14 GMT
by James Moore
The Bullion Desk | View company's profile
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London, 19 August 2009 - Markets remain in a choppy mood with precious metals rallying yesterday following positive German confidence data while selling pressure has emerged overnight as dollar bulls returned and equities pressured lower. The Dow closed Tuesday up 0.9% and the S&P 1% however Chinese stocks have been hard hit this morning with the CSI300 down over 4% and look set to drag European markets lower when trade gets underway. The Euro rallied and dollar fell Tuesday as a result of the German data with the DXY closing down 0.4%. Weak equities and lower than forecast German PPI have bolstered the greenback overnight on renewed safe-haven demand. Energy prices rebounded yesterday with NYMEX crude closing up $2.44 at $69.19/bbl.
Gold was held to a relatively narrow range Tuesday, trading between $934.50-940 as the metal tracked movements in equities and the currencies. Gold moved initially higher on today’s Asian opening to $942.40 but has since reversed back below $935 and could be vulnerable to further pressure, testing to the lower end of the current $920-65 range, as less positive economic sentiment prompts fund players to reduce their long exposure.

Silver traded between $13.85-14.21 yesterday and has traded lower this morning as gold comes under pressure and copper is down over 2%. The metal will again look to gold as well as base metals for direction but a failure to hold above the 100 & 40 DMAs ($13.77/13.79) could see a deeper pullback to the $13.20 area.

Platinum found further support around the $1220 level yesterday, trading between $1218-41 while palladium gained $5, closing at $271. Both metals are reflecting the reduction in confidence this morning with platinum down 1.3% and palladium almost 3%.
A break below $1214 in platinum should find initial chart support around $1183 (100DMA). In palladium a break below $264 could spark liquidation from recently added funds longs.


Published on
Wed, Aug 19 2009, 08:24 GMT
Archive
- Muted start for metals, palladium poised
Published On Fri, Mar 19 2010, 08:41 GMT
- Euro drags precious metals from highs
Published On Thu, Mar 18 2010, 09:19 GMT
- Platinum hits one-month high, gold advances
Published On Wed, Mar 17 2010, 09:19 GMT
- Positive start for precious metals ahead of Fed meeting
Published On Tue, Mar 16 2010, 08:28 GMT
- Gold capped as China rate speculation continues, US ratings concern draws support
Published On Mon, Mar 15 2010, 09:21 GMT
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