Silver futures for July delivery slid 0.2 percent to $28.471 an ounce on the Comex, declining 0.1 percent this week.
Prices fell this week after Federal Reserve Chairman Ben Bernanke did not say strongly that the Fed will launch any additional monetary stimulus and only said that officials remain “ready to act” if economic conditions warrant. Gold received a mild boost from a surprise interest-rate cut by the People’s Bank of China. Even though the Fed did not tip its hand about stimulus, ideas of more central-bank action because of a possible global economic slowdown has bullish survey participants expecting higher prices.
analysts were unsure how the coming week would play out as worries over Spain remained high on the agenda, overshadowing other fundamentals in commodities.
Spain, whose credit rating was downgraded to negative on Thursday, was set to request European aid for its banks this weekend to forestall worsening market turmoil, EU and German sources said.
The euro zone's deputy finance ministers are to hold a call o n S aturday, although no figure for any assistance has yet been fixed for Spain -- the fourth country in the bloc to seek assistance, and the largest to do so since the region's debt crisis began.
The major issue is Spain's downgrade yesterday and whether or not they will agree to a bailout at the weekend meeting or wait until Spain completes an audit of its banking system,
Concerns about slowing in growth in China -- the world's largest commodities consumer -- compounded the difficulty in determining how markets would go in the near-term.
A price spike in commodities following China's surprise rate cut on Thursday proved fleeting, with investors now fearing that Beijing may be trying to preempt the impact of potentially grim economic indicators due this weekend, when it will release inflation, industrial output and trade data.
The Chinese decision was a bit surprising. Cutting rates did signal that they are preempting something that either they know about or just a risk that's clearly ahead of us,
The next meeting of the Financial Stability Oversight Council is scheduled for Monday, the Treasury Department said. Treasury Secretary Tim Geithner will lead the meeting, which is closed to the public.
Known as FSOC, the council comprises top financial regulators and was created by the Dodd-Frank financial-overhaul law. The council includes the heads of the Treasury, Federal Reserve, Securities & Exchange Commission, Commodity Futures Trading Commission and other agencies, and was formed to help coordinate regulatory action and head off another financial crisis.
Conferences
Among the significant conferences next week are Macquarie Financials Conference on Monday and Tuesday in New York; Morgan Stanley Financials Conference Tuesday and Wednesday in New York; REITWeek: NAREIT's Investor Forum Monday through Wednesday in New York; William Blair and Co LLC Growth Stock Conference Tuesday through Thursday in Chicago and Deutsche Bank Global Industrials and Basic Materials Conference Wednesday and Thursday in Chicago.
Survey participants in the weekly Kitco News Gold Survey are split on price direction next week, with no category receiving a majority.
In the Kitco News Gold Survey, out of 33 participants, 27 responded this week. Of those 27 participants, 13 see prices up, while nine see prices down, and five are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
A number of participants were bearish on prices, citing the way gold could not hold support at $1,600 an ounce this week. That level now becomes resistance. “The short-term trend has turned down again. Support is at the previous low of $1,529.30,” said Darin Newsom, Telvent DTN senior analyst.
The participants who are neutral on prices said they want to see if gold can hold the lows in the $1,520s area set last month. Also, some said they are waiting until after the Greek elections on June 17 to see what direction the metal may take based on the election outcome.
Gold for next week june 11-15 2012
S3 S2 S1 = 1554.68,1566.14, 1573.22
Pivot = 1584.68
R1 R2 R3 = 1596.14 , 1603.22, 1614.68
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