Browsing all articles tagged with BullionVault
May
11

Precious Metal Fall 1.5 percent on US Dollar Gain, Posts Weekly Plunge

Yellow metal knock down almost 1.5 percent on Friday as a sharp increased in the US dollar against the Japanese yen triggered technical selling, sending the metal to a two-week low.

Bullion slip for a second consecutive day as the yen plummeted to its weakest against the US dollar in more than four years on Friday, a day following the US currency climbed above the 100-yen level. The US dollar rally also weighed on industrial commodities led by crude.

Gold posted a weekly fall of almost 2.5 percent as continued outflows in gold-backed exchange-traded funds more than offset strong physical retail demand following yellow metal’s historic selloff in mid-April.

Precious metal’s sharp losses previous month has intensified a disconnect among funds that sold on dissatisfaction over gold’s under performance and individual investors who could not get sufficient physical gold coins and bars at bargain prices.

Miguel Perez-Santalla, vice president of BullionVault, an online physical gold and silver market it’s all about the greenback strength, that’s where all the fast money is going. He said, I believe this is another opportunity for physical buyers.

Spot gold knocks down as much as 2.5 percent to a low of $1,420.60 per ounce earlier in the session. It was down 1.3 percent at $1,438.51 per ounce by 2:28 p.m. (1828 GMT)

US Comex division gold futures for June delivery settled down $32 at $1,436.60 per ounce, with trading volume almost 10 percent over its 30-day average.

Carlos Sanchez, director of commodities and asset management at CPM Group said yellow metal accelerated losses following sell-stops were triggered below technical support at $1,450 per ounce.

Gold’s failure to break above a $40 trading range in the precedent two weeks suggested sentiment remains weak following the metal plunged to $1,321.35 an ounce on April 16, its lowest in more than two years.