The End of a Golden Month for Precious Metals!

Throughout this month's precious metal trading; we witnessed that the main three precious metals (gold, silver and platinum) had witnessed a golden month, at a time we witness all time highs, making this the best month for gold since last July, where it was able to achieve its historical high price; silver and platinum had also inclined as well.

Precious metals trades were mixed yesterday, where trading showed an obvious decrease in market participants trading, all caused by the awaited U.S. jobs data. At the same time, precious metals markets witnessed a decline in trading, where they witnessed intensive operations to reap profits during the previous period.

However, yesterday's trading witnessed an incline in gold demand, before New York closing session by requestors of a safe haven. Gold managed to achieve an incline of 0.12% to close at levels $991.70 per ounce, after achieving the lowest at $984.10 per ounce; platinum and silver both closed trading on a decline of 0.16% and 0.19% in a row, where platinum's prices closed at $1269.00 per ounce levels and silver's ended trading at $16.13 per ounce. It’s important to note that trades in London on gold, gold prices plummet from the AM fixing at $991.75 per ounce towards $989.50 per ounce in the PM Fixing session.

In trades today, we witnessed an incline in precious metal prices, where gold is trading around 996.90 levels; whereas, silver is trading at 16.33 levels; ending in platinum gaining $10 per ounce, to trade at $1279.00 per ounce at 1:59 EST.

In addition, the U.S. dollar's declined in today's trading, where on the other hand crude oil prices managed to incline, to remain in levels 67.00 in trading. The decline in the U.S. dollar's exchange rate, alongside the incline in crude's price; sparked demand for precious metals today, at the same time we see trading sizes remaining below the normal level on gold and silver; whereas, platinum witnessed demand as well, caused by optimism spread amid traders that expect that the global economy had finally found a way to recover, where industrial sectors have started to improve, and in turn causing a hike in demand on platinum.

Shifting our view towards commodity indices; we witness that its performance was mixed in yesterday's New York trading, at a time the S&P GSCI index witnessed some minor declines, to close its trading at 444.48 levels; the RJ/CRB COMMODITY index witnessed some incline, to close yesterday's trading at 252.13 points.

Numerous key indices witnessed a decline in today's and yesterday's trading, caused by the continuous decline in demand on investments, where investors are not willing to increase risk at a time we await Friday's economic charts to be released.

Moreover, the mixing of commodity indices closing overshadowed key stock markets around the globe; makes us see that demand that had been witnessed on precious metals was mostly as a safe haven, with some precautions and limited speculations about the market prices, on a small group of traders.

We still see that precious metals could possibly decline throughout the upcoming few days, mainly because of the size of trading. However, this decline might force prices to decline to spur more demand, while on the medium term there are no changes occurring to our expectations of an upside move.