Gold Bullion (GOLD)

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Market Nuggets


MKS Finance: Softer Dollar, Eurozone Anticipation Boost Gold Prices

Wednesday June 06, 2012 2:20 PM

Gold surged amid hopes that European leaders will address the continent’s credit/banking crisis, says MKS Finance. The dollar’s weakness was the catalyst behind the metal’s sharp surge. The European Central Bank left interest rates unchanged, but MKS says ECB chief Mario Draghi in essence put “pressure on individual governments to take strong steps to combat growing banking crisis. Gold prices briefly wobbled when Draghi spoke yet quickly recovered on hopes that eurozone governments might be shamed into more aggressive action at the next summit on June 28-29.” Much of the activity was short-term macro buying, with buy stops triggered, MKS says. As of 2:05 p.m. EDT, spot gold was $9.75 higher at $1,626.75.

By Allen Sykora of Kitco News; [e-mail]



Market Nuggets: RBC: Base Metals Rally With Commodities As U.S. Dollar Weakens

Wednesday June 06, 2012 2:06 PM

Base metals rose as part of a commodity-wide rally on the back of weakness in the U.S. dollar, says RBC Capital Markets. “After last week’s dismal (U.S.) employment report, the market had gotten itself quite oversold and thus was due for a bounce,” RBC says. “Many players are now looking to bet on more global monetary easing, which should help commodities as money floods the system and hard assets become more dear.” Around 2 p.m. EDT, the euro was up to $1.2552 from $1.2450 late Tuesday. LME copper was up $102.75 to $7,463.75 a metric ton and aluminum was up $8.50 to $1,981.

By Allen Sykora of Kitco News; [e-mail]



Market Nuggets: FuturePath's Lesh: Comex Gold, Silver Hit 4-Week Highs As Risk Sentiment Picks Up

Wednesday June 06, 2012 12:23 PM

Comex gold and silver hit their strongest levels in four weeks as equities also rose but the U.S. dollar softened, says Frank Lesh, broker and futures analyst with FuturePath Trading. “Risk is back on,” he says. Markets have been bolstered by ideas that the Federal Reserve and European Central Bank may undertake further accommodative policies, he says. Light buy stops may have been elected in August gold as it moved up through last week’s $1,632 an ounce high, Lesh says. He puts chart resistance for August gold in the $1,650s, then the 100-day moving average around $1,670. He lists resistance for July silver from $30 to $30.40. As of 12:04 a.m. EDT, August gold was $23.60, or 1.5%, stronger at $1,640.50. July silver was up $1.325, or 4.7%, to $29.73 an ounce. August gold hit a high of $1,642.40 that was its strongest level since May 7, while July silver hit a $29.815 high that was its most muscular level since May 8.

By Allen Sykora of Kitco News; [e-mail]



Market Nuggets: UBS: Exchange-Traded-Fund Holdings Of Gold Pick Up So Far In June

Wednesday June 06, 2012 08:19 AM

Buyers are moving into physically backed gold exchange-traded funds so far this month, says UBS. In May, the bank says, ETF holders were net sellers of 911,000 ounces. “In June, that appetite has changed and global ETF holdings have increased by 0.17 moz, principally led by GLD buying,” UBS says. Gold holdings by GLD, or SPDR Gold Shares, now stand at 40.96 million ounces, compared to 40.84 million at the end of May. “The return of this buying is certainly a positive for gold, but more needs to follow through,” UBS says.

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