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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.


Precious Metal Ends Lower, Copper jumps 7% on US Jobs Data

Yellow metal futures finished with a modest loss on Friday as greater than expected US employment numbers dulled the gold’s safe-haven appeal.

For the week, bullion found support from the European Central Bank’s decision to cut interest rates and from strength in physical demand to end the week 0.7% advanced.

Precious metal for June delivery chop down $3.40 or 0.2%, to settle at $1,464.20 per ounce on the Comex division of the New York Mercantile Exchange.

Labor Department said on Friday that the US economy created a net 165,000 jobs in April. The figure surpassed the 135,000 prediction of economists. The rushing in hiring nudged the unemployment rate down to 7.5%, the lowest level since December 2008.

Right before the data’s release yellow metal prices were trading about $13 per ounce higher than Thursday’s close, then following the figures they fell to trade around $10 lower.

Copper futures rallied almost 7% for their biggest one day percent advance in over two and a half years, as the jobs statistics brightened demand prospects for the industrial metal.

The July silver contract added 18 cents, or 0.8%, to end at $24.01 per ounce, climbed 1% from a week ago.

Chintan Karnani, an independent bullion analyst based in New Delhi said that if hiring continues to increase at the current pace for the coming two to three months that would be bearish for safe havens like silver and gold.

He further said only the interest rate cut by the European Central Bank and firm physical gold demand in Asia are supporting gold prices.

Gold dealers reported impressive jumps in April precious metal sales.

Will Rhind, managing director of ETF Securities, a provider of physically backed gold ETFs including the ETFS Gold Trust stated request is mainly being seen by coin/bar merchants and gold dealers (bullion banks) that act on behalf of central banks and other great institutional physical players.

Copper for delivery in July jumped 21 cents or 6.8% to a three-week high of $3.315 a pound. It rose approximately 4% for the week.



Gold down Still Posts Greatest Weekly Addition in 3 Months

Bullion knock down in choppy trade on Friday on as investors took profits, however the market still posted its greatest weekly gain in three months on strong physical demand following bullion hit a two year low previous week.

In untimely trade gold climbed more than 1 percent following the US Commerce Department reported that economic growth regained speed in the first quarter, however not as much as expected. Gold gave back those early additions and slipped into negative territory as options related selling kicked in, and losses in industrial commodities including copper and crude oil also weighed.

Gold has recovered more than half of the loss of $225 an ounce incurred among April 12 and 16.

Investors in exchange traded funds headed for the exits concerned regarding potential central bank sales of gold and uncertainty over the outlook for US monetary stimulus.

Erica Rannestad, precious metals analyst at the CPM Group said that there is still some long liquidation in the market, signifying that some investors are still repositioning themselves and that leaves the price susceptible to some sideways actions.

Spot gold was down 0.6 percent at $1,457.76 per ounce by 3:28 p.m. EDT (1928 GMT), off the session high of $1,484.80.

US gold futures for June delivery settled down $8.40 at $1,484.80 per ounce. Trading volume was almost 10 percent above its 30-day average.

Robin Bhar, Societe General Analyst said that GDP is encouraging for precious metal as the whole sell off in the yellow metal was linked to perceptions that the US economy was getting stronger and stronger.

US first quarter growth expanded at a 2.5 percent annual rate, less then economists expectations for 3 percent. In the meantime, a separate report on consumer sentiment demonstrates a drop from the previous month.

Silver also climbed early, striking a 10 day high of $24.82. Then it slipped down 1.7 percent in late trade to $23.91 per ounce.

Holdings of the biggest gold backed exchange traded fund, the SPDR Gold Trust dropped 0.25 percent to 1,090.27 tonnes on Thursday from 1,092.98 on Wednesday. Holdings are at their weakest level since September 2009.

Among platinum group metals, platinum added 0.4 percent to $1,472.49 per ounce, as palladium was down 0.4 percent at $677.25 per ounce.


Precious Gold Increased More Than 1 pct, Heads for Best Week in 1-1/2 years

Yellow metal was headed for its greatest weekly addition in one and a half years following increasing more than 1 percent on Friday as a mid-month plunge in prices prompt bargain hunting and a surge in physical buying across Asia.

Gold still attracted buying even though the price had bounce back more than $100 since declining to a two year trough of about $1,321 previous week, with dealers reporting a shortage in gold coins, bars, nuggets and other products.

Ronald Leung, chief dealer at Lee Cheong gold Dealers in Hong Kong said that there’s panic buying. Everybody is buying gold. It still has a chance to go up to $1,500 and maybe a bit more. $1,525 is then the big barrier.

It was floating to be up more than 5 percent for the week. Gold posted its biggest daily climb since June last year on Thursday, however was still down 12 percent this year.

Precious metal was up $7.30 per ounce at $1,474.29 by 0408 GMT, off an initial high of $1,484.81 its strongest since April 15.

It’s not simple to go back down to $1,400 as long as the physical market is still firmed. The thing is that there are no immediate stocks.

US gold futures for June delivery climbed as high as $1,484.80 per ounce.

International Monetary Fund said on Wednesday, bullion was also supported by prediction of more central bank buying following Russia and Turkey raised their gold reserves in March, increasing their holdings ahead of a spectacular plunge in prices this month.

Premiums in Singapore stayed at their highest since October 2008 at $3 per ounce to the spot London prices on demand from Indonesia, India and Thailand.

Premiums for gold bars in Hong Kong climbed to at their highest level since October 2011 this week, at rise to $3 an ounce to spot London prices, partly as of an increase in buying interest from China, the world’s second largest consumer following India.

The Indonesians have told me they should begin selling at above $1,450, however they are actually buying some this morning, while the amount is not great. Local demand in Thailand is still good, he also see a pickup in demand for silver.


Precious Metal Added Because Buyers Chase Gold

Gold shrugged off weakening US gold futures to jump as much as 1 percent on Wednesday as buyers snapped up precious metal, coins and nuggets following prices touched their lowest in more than two years the session before.

Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore said people are essentially buying everything, gold bars and gold coins. People are hurrying to get a hand on it, we have a problem meeting the demand as we are unable to get new supply.

Yellow metal strike a session high of $1,381.80 per ounce and was standing at $1,370.84 by 0611 GMT, up $3.05. Gold fall to $1,321.35 on Tuesday, has dropped almost 18 percent so far this year following an unbroken 12-year string of gains.

However gold is not out of the woods yet because investors continued to shift holdings from exchange traded funds, even as the growth in physical buying led to a shortage of precious metal in Hong Kong and Singapore.

There’s a vast backlog, it’s the same for silver. So far sentiment seems to be improving even the price has more or less stabilized.

PDR Gold Trust, the world’s biggest gold backed ETF stated its holdings knock down 0.73 percent to 1,145.92 tonnes on Tuesday from 1,154.34 tonnes on Monday. Holdings of global gold ETFs are currently at their weakest since late 2011.

The purchases pushed up premiums for precious metal in Singapore to their highest in 18 months at $1.70 per ounce to spot London prices, however demand from top consumer India was surprisingly low despite the wedding season.

Gold future for June delivery gave up $14.80 or 1%, to trade at $1,372 per ounce during Asian trading hours.

On Tuesday, gold climbed $26.30 or 1.9%, on the Comex division of the New York Mercantile Exchange. The advance followed two consecutive sessions of turn down which stripped prices of more than $200 per ounce.


Gold miners face New Challenge in Sinking Gold Price

A steep slump in the price of precious metal will strike profits at mining companies that are already straining under increasing costs, and could prompt some miners to reorganize their capital spending.

Although lower prices are not possible to wipe out miners profits, they will squeeze cash flows because companies are still feeling the impact of pricey acquisitions made at the height of the commodity cycle.

Yellow metal companies big and small sold off on Monday and Tuesday as the outlook of central bank bullion sales and fears that the US might reduce monetary stimulus tipped spot gold prices off a ledge, to a more than two year low around $1,300 per ounce.

Canada’s Barrick Gold Corp, which was forced to suspend construction on the Chilean side of its massive Pascua Lama gold and silver mine previous week over environmental concerns, fall 10.4 percent to C$20.55 on the Toronto Stock Exchange.

Pawel Rajszel, Veritas Investment Research analyst, who is broadly negative on the sector said that everybody was take pleasure in the high tide, and now that the tide is coming down you are seeing who’s swimming naked and the thing is everybody’s swimming naked.

The largest declines hit small and intermediate companies, which usually have less flexibility to focus exclusively on high quality assets than major producers.

The S&P/TSX Global Gold index ended with decreasing 9.3 percent on Monday following touching its lowest point since late 2008.

However competitor Goldcorp Inc was down a comparatively modest 4.7 percent at C$28.66.

Evolution Mining, which owns five gold and silver mines in Australia, drop 17 percent on Tuesday on the Australian Securities Exchange, as Alacer Gold, with gold mines in Australia and Turkey slipped 10 percent.

But bullion prices appeared to be recovering a small piece of that rout on Tuesday with futures up $16.90, or 1.2%, to $1,377.50 per ounce.


Gold Fall to Near 4 week Low on US Economic Confidence

Precious gold knock down for a second straight day on Wednesday to strike its weakest in four weeks, with investors switching their money into risky assets for healthier returns on renewed optimism over the US economy.

Gold has slide more than 3 percent since striking a 1 month high in March as fears regarding the debt crisis in Europe subsided and Wall Street rallied on strong US economic statistics, limiting safe haven demand.

Yellow metal jump down as much as 0.8 percent to $1,563.06 per ounce on Wednesday, its lowest since March 8, following initially hitting an intraday day high of $1,576.91 per ounce on bargain hunting. By 0628 GMT, bullion was at $1,565.16 down $10.08 per ounce.

CIMB regional economist Song Seng Wun said that essentially all depends on the flavor of the day. Now he believe sentiment has shifted, maybe with the US economy on a stronger footing, it’s enhancement to be in equities.

Weaker bullion prices dragged down other metals, with silver declining to its lowest since July attracting physical buying from Thailand.

US data on Tuesday demonstrate February factory orders climbed 3 percent somewhat above then expectations.

Spot gold to jump down to $1,562 per ounce.

It was just a day earlier that gold reclaimed the $1,600  per ounce level, increasing $5.20 or 0.3%, to settle at $1,617.90 per  ounce, feeding off less than expected US manufacturing statistics.

Mark O’Byrne, executive director at gold dealer GoldCore said that risk appetite is progressing to pressurize bullion, however the metal’s fundamentals remain sound and smart money will continue to buy on the dip.

Possibly one should take a bit more risk, It is more of a case of people taking capital off the table from precious metal because they are not quite sure where the technical downside is for yellow metal at this point.

Gold future for June delivery jump down $25 or 1.6%, to settle at $1,575.90 per ounce.


Yellow metal Climbed on China PMI Figures, Flirts with $1,600 per ounce

Precious metal firmed on Monday, as signs that China’s economic revival was attaining traction could enhanced demand for commodities, however prices could be capped by doubts regarding the debt crisis in Cyprus bank and the weakness of the euro versus the US dollar.

Yellow metal rallied to a 1-month high in March on concerns regarding fiscal stability in Europe following the European Union gave Cyprus an ultimatum to lift billions of euros it needs to settle a bailout deal or face a possible exit from the currency zone.

Strain in the Korean peninsula has yet to generate a rush in purchases from investors in Asia, however a full-scale conflict among the two Koreas could potentially increased yellow metal’s safe haven appeal in times of uncertainty.

Bullion hit an intraday high of $1,600.81 per ounce and traded at $1,597.76 by 0647 GMT, up $1.59. Gold ended the quarter down around 4 percent following stock markets rushed and the euro stayed weak as compare the dollar.

Brian Lan, managing director of GoldSilver Central Pte Ltd said that investors are in an uncertain market, usually a strong PMI data from China would tend to draw investors towards stocks and not support precious metal prices, however this time investor perceive a reverse. The North Korea stress is adding to the market doubt’s.

Physical buying by the retail investors during price plunged have been observed and this helped to support prices, which should increased to $1,600 per ounce. If thing goes well it look’s like a bullion could move on to a higher trading range of $1,620 per ounce.

The euro fall to approach a four month low on concerns regarding the spillover from Cyprus bailout conditions, as the Australian dollar was tripped up following statistics showed a slower than expected bounce back in Chinese factory activity in March.


Gold Hang On About $1,590, US job Statistics Weighs

Yellow metal float at $1,590 per ounce on Friday, following positive US labour market statistics added to indication of an economic recovery that would make safe haven assets like precious metal less attractive.

The number of Americans heading new claims for unemployment benefits knock down for a third straight week previous week, the latest signal the labour market recovery was rising grip.

Barclays lowered its 2013 and 2014 price predicts for on Thursday in a memo, saying downside risks to the yellow metal position have increased, as the benefit catalysts have retreated.

Commissioner Scott O’Malia said on Thursday that the US Commodity Futures Trading Commission has engaged in a couple of dialogues regarding whether the daily setting of silver and gold prices in London is open to manipulation.

Germany’s economy will gradually recover ground lost at the end of 2012 and develop 0.6 percent this year thanks to higher investments on the back of low interest rates.

Holdings of SPDR Gold Trust, the world’s biggest gold backed exchange traded fund had plunged 3.432 tonnes so far this week on course for an eleventh week of turn down, while holdings were unaffected at 1,236.307 tonnes from a day earlier on March 14.

Spot gold traded nearly on a flat rate at $1,589.61 per ounce by 0016 GMT, on course for a second week of modest addition.

US gold knock down 0.1 percent to $1,588.70 per ounce.

With sustained confidence in the US economy and a lack of obvious concern for the global economy in general, precious metal is struggling to find a justification for price strength.

Gold future for April delivery tacked on $2.30, or 0.1%, to settle at $1,590.70 per ounce on the Comex division of the New York Mercantile Exchange, following tapping a low of $1,575.20 per ounce.


Gold Float’s around $1,575 per ounce, Bank’s Intrested In Buying

Precious Gold float around $1,575 per ounce during the Wednesday’s trading session, suffering form a recent range as a strong stock market performance drew the attention of investors who have become more certain in the economic growth position.

South Korea’s central bank stated on Wednesday it purchased 20 tonnes of yellow metal in February in the fifth purchase of the gold in less than two years, captivating total holdings to 104.4 tonnes.

Some other major banks are breaking away from the agreement for continued addition in yellow metal prices as an initial return to growth of the global economy has damaged the argument for holding the gold.

Holdings of SPDR Gold Trust, the world’s greatest gold backed exchange traded fund, fall for an eleventh successive session to a 16-month low of 1,244.855 tonnes on March 5. The fund had observed an outflow of 105.965 tonnes so far this year as compared with a 96.25 tonne inflow in 2012.

The US Congress is moving swiftly to pass legislation funding the federal government during Sept. 30, while Senate leaders on Tuesday expressed eagerness to prevent any threat of agency pack up when money runs out on March 27.

Spot gold climbed up 0.1 percent to $1,577.05 per ounce by 0037 GMT, floating within a recent range among $1,564 to $1,587 per ounce. US gold was also increased 0.1 percent to $1,576.80 per ounce.

Peter Hug, global trading director at Kitco Metals said that some superior demand for physical gold from Asia and bright economic stimulus measures from China are prompting bargain hunting and short covering in yellow metal and silver markets.

Gold future for April delivery increased $3.20 to $1,578.10 per ounce in Asian trading session.