Despite European Central Bank chairman Jean-Claude Trichet's statement Thursday that "strong vigilance" against inflation was required and market expectations of a hike in interest rates as early as July, the euro slipped against the greenback, weighing on commodities.
At 0536 GMT, the euro slipped to $1.4497 after opening at $1.4511.
Gold, which is viewed as a hedge against inflation, was trading in a tight range through the morning. Spot gold was trading at $1,541.20 a troy ounce, down $3.20 from the previous close.
"Gold seems to be stuck in a range, but there is also a little bit of profit-taking going on," said a Hong Kong-based trader.
The yellow metal opened higher in the morning after Trichet's comments and as market participants anticipate a rate hike in July.
As higher interest rates tend to support a currency's value, a stronger euro would have made dollar-denominated commodities attractive to buyers using other currencies.
However, a weaker euro this morning dragged precious metals down.
Precious metal prices have scaled new highs this year aided by a stream of weak economic indicators and ongoing concerns over Greek's sovereign debt crisis. Besides, a loose money policy in the U.S. under the second round of stimulus, also known as quantitative easing, has supported precious metal prices.
Earlier this week, Federal Reserve Chairman Ben Bernanke didn't give any indication of a new round of quantitative easing. The last round winds down this month.
"We are all waiting to see if the Fed announces QE3," said another Hong Kong-based trader, who expects gold prices to trade between $1,530/oz and $1,550/oz until the end of July.
Research consultancy Capital Economics expects gold prices to "head markedly higher" to $2,000/oz in 2012 with or without another round of stimulus from the U.S. Federal Reserve, mainly due to worries about the health of the global economy and sovereign debt.
But traders are unsure of gold prices moving above $1,550/oz as the market lacks triggers to propel prices above that key level.
Silver, like gold, remained rangebound through the day, with some traders and analysts wary of its volatility.
Standard Bank said silver remains volatile and could find support on dips towards its 100-day moving average at $36.12/oz.
Spot silver was trading at $37.35/oz, down 22 cents from the previous close. Platinum was flat at $1,839/oz and palladium was up $1 at $815/oz For the latest updates PRESS CTR + D or visit Stock Market news Today
Related Post:
gold
- Gold will climb toward $1,900 an ounce first half 2013
- Why Gold prices down analysis jan 7 2013
- Gold Prices expected Bullish Next Week
- Analysis forecast Gold prices in india 2013
- Why gold futures prices Down, Analysis december 26 2012
- Analysis gold prices for next week december 17-21 2012
- Goldman Sachs forecasts gold prices 2013-2014
- Analysis Gold prices dec 3 2012
- Gold, Silver Prices rose watch U.S budget deal
- Gold futures down in Asia trading november 14 2012
- analysis gold prices next week november 12-16 2012
- MCX Gold trend for november 12-16 2012
- Analysis Gold prices after obama win
- Analysis gold prices next week November 5-9 2012
- MCX Gold prices down october 30 2012
- Gold prices prediction next week october 29 2012
- Spot Gold prices expected down october 2012
- gold prices for next week october 22-26 2012
- gold futures prices expected week october 15-19 2012
- gold prices for next week october 8-12 2012
- how will Impact tensions in the Middle East on Gold Prices
- Gold Prices predicted $2,400 summer 2013
- Gold futures Prices october 4 2012
- Technical Forecast Gold, Silver prices october 1-5 2012
- Gold prices prediction october 1-5 2012
silver
- Spot Silver prices expected october 23 2012
- Technical Forecast Gold, Silver prices october 1-5 2012
- Spot silver prices prediction december 2012
- Silver prices forecast september 24-28 2012
- Gold and Silver are expected down april 11 2012
- Gold, silver futures rose april 5 2012
- Silver Wheaton stock forecast 2012
- Gold and Silver prices expected down march 6 2012
- silver prices predictions feb 27 - march 2 2012
- Silver Stock Price feb 17 2012
- Average silver prices forecast 2012-2013
- silver prices outlook On FOMC Rate Decision jan 25 2012
- silver prices prediction january 23 -27 2012
- Gold and silver prices outlook january 19 2012
- MCX Gold, silver tips jan 13 2012
- silver prices prediction April 2012
- MCX Silver price jan 11 2012
- best silver stock to invest 2012
- Gold Silver Prices jan 10 2012
- silver supply and demand 2012
- gold, silver price target 2012, 2013, 2014, 2015, 2016
- Outlook for Gold and Silver Prices 2012
- BNP Paribas gold, silver prices predictions 2012-2013
- how high will silver prices go in 2012
- Gold and Silver Futures Prices december 14 2011
No comments:
Post a Comment