The gold rally took a breather on Tuesday as a modest bounce in the dollar prompted some mild profit-taking.
Gold for June delivery on the Comex division of the New York Mercantile Exchange was last down $7.80 at $1,210.80 per ounce. On Monday, the yellow-metal touched a seven-week high at $1,224.
Not only has the dollar strengthened today but gold specifically ran into technical resistance near $1224, Dennis Gartman, editor of the Gartman Letter, noted.
“That resistance has proven to be reasonably formidable in the short term,” Gartman said. “But support shall be evident at the $1,210-$1,214 level today as other commodity prices are firm and as the gold trading community becomes convinced that the monetary authorities around the world have collectively embarked upon demonstrably easier monetary policies that will in the end engender inflation and will in the end offer strong support to gold.”
The dollar was 0.65 percent stronger at 1.0850 against the euro, while Germany’s DAX and France’s CAC-40 climbed 1.11 percent and 1.53 percent respectively. In Asia, the Nikkei and Hang Seng closed up 1.25 percent and 0.77 percent.
“Although the greenback recovered from earlier losses and regained some ground by late Monday, trading conditions were thin and investors will likely not put much stock into the one-day reversal given the rash of weaker macro data coming out of the US of late,” INTL FCStone’s Edward Meir said.
Most notably, the US Bureau of Labor Statistics reported on Friday that total nonfarm payroll employment increased by just 126,000 in March, which was well below the 247,000 forecast.
In data today, Spanish and Italian services PMI data was better-than-expected at 57.3 and 51.6 respectively, while the EU number was as expected at 54.2. EU Sentix investor confidence undershot at 20.
Later, the US has JOLTS job openings, IBD/TIPP economic optimism and consumer credit scheduled.
As for the other precious metals, Comex silver for May delivery was down 26.5 cents, or 1.49 percent, at $16.845 per ounce. Trade has ranged from $16.730 to $16.975.
Platinum for July delivery on the Nymex was down $12.30 at $1,168.10 per ounce, while the most-actively traded palladium contract was at $771.40 per ounce, up $2.60.
The post Gold consolidates on dollar pull-back but support firm at $1,210/oz appeared first on The Bullion Desk.
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