Blog posts tagged with 'precious metals'

The initial trade in #gold today is lower in a knee-jerk reaction to slightly higher US #dollar action and from a slight blip-up in US interest rates.

The Peoples Bank of China overnight posted another incremental increase in gold reserves in July of roughly 2 million ounces in a continuation of their gradual and difficult-to-monitor buildup of gold reserves.

Unfortunately for the bull camp gold ETF holdings saw a 10th straight daily outflow last Friday bringing net sales from holdings this year up to 2.86 million ounces...[MORE]

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Aug 7 (Reuters) - Gold prices receded on Monday as the U.S. dollar and Treasury yields gained after traders digested Friday’s jobs report, with attention turning to U.S. inflation data later this week.

Spot gold was down 0.4% at $1,934.89 per ounce by 1122 GMT, having slid to its lowest since July 11 on Friday before settling 0.4% higher. U.S. gold futures eased 0.3% to $1,969.70...[LINK]

Even though the overnight declines in gold and silver are modest, the rally in the dollar index is also small leaving currency-related selling in gold and silver somewhat limited early on.

While the decline in gold yesterday was not severe, the market did make a lower low and was pressured by a significant jump in US interest rates.

Fortunately for the bull camp, offsetting the jump in rates was off-balance US dollar action...[MORE]

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Aug 4 (Reuters) - Gold on Friday was on track for its biggest weekly decline in six as data projecting continued strength in the U.S. labour market firmed bets for U.S. interest rates remaining elevated and boosted Treasury yields and the dollar.

Spot gold was down 0.1% at $1,932.09 per ounce by 1046 GMT and U.S. gold futures were trading 0.1% lower at $1,967.20...[LINK]

With the dollar posting a higher high overnight the lower low in the gold and silver markets was to be expected.

Yesterday gold ETF holdings declined for the eighth straight session with a rather substantial reduction of 176,980 ounces bringing the year-to-date change in holdings to -2.8%. Silver ETF holdings saw a third straight day of outflows with year-to-date holdings now down 2.6%.

In retrospect, the failure to see gold and silver benefit from the Fitch downgrade of US credit highlights a prevailing bearish sentiment in the precious metal markets...[MORE]

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Aug 3 (Reuters) - Gold steadied on Thursday after data showing a deterioration in euro zone business activity triggered some safe-haven inflows, but bullion held near three-week lows on a stronger dollar and higher bond yields.

Spot gold was nearly flat at $1,934.29 per ounce by 1204 GMT, having hit its lowest since July 11. U.S. gold futures fell 0.3% to $1,969.80...[LINK]

While the dollar did not post a higher high for the move in the overnight action it remains a headwind for the gold bull camp.

Given the lack of a recovery in gold and silver following the downgrade of US credit by the rating agency Fitch the market is not sensitive to flight to quality issues.

In a second negative story, the World Gold Council indicated that Indian gold demand in the 2nd quarter declined by 7% from last year and suggested the slumping demand was the result of persistent record-high Rupee gold prices which reduced affordability and turned off consumer interest...[MORE]

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August 2 (Reuters) - Gold prices gained on Wednesday, helped by some safe-haven bids after Fitch downgraded the United States’ top credit rating, but an uptick in the dollar capped bullion’s gains.

Spot gold was up 0.5% to $1,952.79 per ounce at 1133 GMT, while U.S. gold futures rose 0.6% to $1,989.90...[LINK]

August 1 (Reuters) - Gold retreated on Tuesday as the dollar firmed and hopes of a soft landing for the U.S. economy dented safe-haven demand for bullion.

Spot gold eased 0.5% to $1,954.49 per ounce by 1136 GMT, while U.S. gold futures dropped 0.9% to $1,953.70...[LINK]