Looks like the upside wave to precious metals had reached an end
We witnessed last Friday a fall to precious metals, as it extended the previous losses today. Most losses was seen to the silver falling 1.34% on Friday to fall from a high of $17.31 per ounce recorded before closing and to end trading at $16.98 per ounce. The losses seen since the early morning even with the absence of the Japanese Markets reached to 2.36%, as the silver is currently trading at $16.58 per ounce at 02:24 GMT.
The shiny plummet on Friday 0.57% to close at $1006.50 per ounce, while in the early trading today we’ve seen a deeper fall of 0.62% where the metals is currently trading at $1000.30 per ounce. The platinum lost 0.53% today following a 0.67% to currently trade $1321.00 per ounce.
The fall seen to the precious metals was noticeable, at the time speculators and investors headed toward profit taking transactions, yet it worth mentioning that some funds started to ease their gold purchase as they are waiting for the most important fundamentals of this week which is the FOMC rate decision. Markets project some signals to stop the already started quantitative easing methods, as such news would directly push the US dollar higher against majors, where this would make market participants dispose precious metals as a safe haven.
Regarding Oil, we witnessed the crude oils failure to settle above $72 per barrel in the previous week trading, as this also acted negatively to push precious metals back down in addition to the US dollar that managed to escalate against majors increasing further pressures.
Future Commodities plummet down on Friday, where the S&P GSCI fell 3.54 points to close at 468.92 levels; in addition we’ve seen other commodities futures plunge due to the weakened demand and the profit taking transactions, as we still believe that spending won’t pick up pace any time soon even with all the seen improvements in the prior period affected by the worst recession since the World War II.
Low Future Commodity prices along with the falling crude oil prices escorted by the rising US dollar came all to pressures the precious metals, whereas now fears will remain heading toward the FOMC rate decision and any statement released along with the decision. Therefore, we currently see the pressures on the silver and the platinum in specific because they are currently considered the two appealing metals between others, due to the continuous instability between market participants believes in markets.