The gold price ticked higher in Friday morning London trading following a cross-complex washout in the previous session that reflected the fading of a run of bullish factors.
Spot gold was last at $1,263.00/1,263.80 per ounce, up $2.70 and trading within an intraday range of around $10.
It had dropped 2.7 percent to a two-week low at $1,251.60 late on Thursday when investors liquidated positions. Silver also recorded large losses, slumping as much as seven percent at one stage at $16.74, a two-week low, slipping from an intraday high of $18.05.
“I said a few weeks ago that I thought this rally would all end in tears and, although that was probably a little overly dramatic, sure enough we have seen gold and silver revert to form,” Marex Spectron’s David Govett said.
“Since then we have consolidated slightly and I think, that for the time being at least, the worst is over. I won’t be holding my breath for a recovery though and think, again in the absence of any startling news, we will remain in the doldrums,” he added.
Gold had rallied as much as 10 percent at one stage this month, bolstered by a range of bullish factors including uncertainty in the eurozone, the Greek elections and the prospect of a delayed US interest-rate rise because of global growth concerns and falling oil prices.
Following the Fed’s January statement, the market is once again looking for a catalyst to define the near-term outlook.
In data today, eurozone inflation dropped to its lowest since July 2009 at -0.6 percent, down from -0.2 percent in December, as plummeting oil prices continued to take their toll. The core figure, which strips out the volatile elements of food and fuel, 0.5 percent also missed forecasts and was down from 0.7 percent for the previous three months.
“The EU flash CPI of -0.6 percent was at a level not seen since July 2009, highlighting the severity of this drop. This indication that a deflationary spiral has gripped the eurozone validates the ECB’s decision to implement full-blown QE of more than one trillion euros to stimulate inflation creation,” FastMarkets analyst Tom Moore said.
The eurozone unemployment rate fell to 11.4 percent from 11.5 percent previously.
Today’s US GDP figure, which will be watched for near-term currency movements after the Fed statement earlier in the week, should provide some insight on the state of its economy. The US employment cost index, the Chicago PMI and revised UoM consumer sentiment figures are also due later.
In the other metals, silver was last up six cents at $17.00/17.05 per ounce, platinum was up $6 at $1,225/1,230 and palladium was $10 higher at $779/784.
In company news, Norilsk’s palladium and platinum output of 640,000 ounces and 148,000 ounces were down 15 percent and 20 percent respectively in the fourth quarter, although it attributed this to higher production volumes in the prior months of 2014.
(Editing by Mark Shaw)
The post Gold ticks up after cross-complex washout, US GDP eyed appeared first on The Bullion Desk.
No comments:
Post a Comment