Morning Gold Fix – March 1, 2012
April Gold settled at $1711.30 per troy ounce on Wednesday, a loss of $77.10 for the day.
Apr gold was up $2.5 to $1713.8 per 100 troy ounces as of 8:15 EST this morning. The March U.S. dollar index was up .051 to $78.845. April platinum was down $0.6 to $1692.0 per 50 troy ounces. March silver was up 26.7 cents to $34.850.
In the News
Bloomberg (Reported 3/1/2012)
European stocks and commodities rose as borrowing costs declined for Spain and France and results from Adecco SA and WPP Plc beat estimates. U.S. equity index futures gained, while Treasuries fell before a report that may show manufacturing increased. The Stoxx Europe 600 Index added 0.7 percent at 7:20 a.m. in New York. Standard & Poor’s 500 Index futures advanced 0.3 percent. The yield on Spain’s two-year notes retreated for an 11th day, dropping eight basis points to 2.24 percent. European Stocks, Commodities Rally on Spain
Reuters (Reported 3/1/2012)
Gold rebounded on Thursday as physical bullion investors were tempted back to the market by the previous session’s 5 percent price plunge, its biggest one-day drop since before the collapse of Lehman Brothers in October 2008. Spot prices fell more than 5 percent on Wednesday after Federal Reserve Chairman Ben Bernanke gave no hints that a third round of quantitative easing, which had been a key support of gold prices, was imminent in the world’s largest economy. Gold rebounds after price rout draws buyers
Kitco (Reported 3/1/2012)
The gold and silver market bulls are dazed from Wednesday’s unexpected steep downdraft in prices. The precious metals sold off Wednesday morning when U.S. Federal Reserve Chairman Ben Bernanke, in prepared remarks to the U.S. Congress, made no mention of another round of quantitative easing in the works by the U.S. central bank. This has led some to reckon that with an improving U.S. economy the Fed may not need to continue to inject liquidity into the monetary system. Comex Gold, Silver Try To Recover From Wednesday’s Shellacking
Yesterday’s sharp break highlights a significant bear turnover and should foster selloffs to attack retracement support at 169090*. A close under 179090* signals a larger downturn that should drive bear trending declines to 1777/1760. We may see corrective congestion inside the lower half of yesterday’s break, but narrow congestion under 173830* should quickly bear flag. Only a close over 175910* signals a return to bull trending trade.
Yesterday’s sharp reversal drop signals a short term top and signals for retracement selling to test the 3326* support level. Trade is poised for follow through selloffs and drop under 33985 will help propel declines to 3326*. A close under 3326* alerts for a larger bear turnover. We may see corrective congestion back inside the lower half of yesterday’s turnover for 1-2 days, but only a close over 3626* rekindles bull trend forces.
The market has been trying to lift secondary rallies to test of the last swing high and weekly resistance around 395-40170. The second rejection from over 395 alerts for topping trade. A close under 380* will confirm a bear downturn, opening up a potential bear wave to the low 360’s. We may see attempts to climb back higher, but a pop over this week’s high is needed to send a run to 40170.