Major Correctional Wave on Precious Metals
Precious metals declined strongly in yesterday's trading session; where gold closed with a 1.14% drop in NY at 1050.00; whereas silver managed to fall by 3.02% and close at 17.34; while platinum also fell by 0.74% to close at $1349.00 per ounce.
Meanwhile, crude's spike was not considered to be responsible for maintaining metals gains. However, crude managed to ascend towards $78.00 per barrel, alongside the dollar's rise, which eased crude's positive gains yesterday. Even with today's dollar drop again, precious metals remained around their lower achieved levels during yesterday's session.
At precisely 2:28 EST in NY; precious metals were trading bearishly, where gold today is trading at 1047.00; whereas silver is trading at 17.28, a noticeable decline from yesterday's NY closing; platinum is currently also trading lower by 0.74% at $1339.00 per ounce.
Yesterday's main commodity indices traded to the upside, but this was not why traders headed into precious metal markets. The major surge in gold, silver and platinum witnessed throughout the previous period was the reason behind the major speculation that was seen, which caused wide profit-taking sessions from time to time. Investors were seen heading towards stock markets and numerous other commodities, while as the weekend approached we witnessed wide profit-taking from speculators.
On the other hand, we won't rule out bearish correction waves on precious metals. Yet, we still see that the overall bullish direction will prevail over the medium term. Meanwhile, global interest rates from central banks are low, alongside quantitative easing policies, which might have adverse inflationary effects. This might spur buying precious metals as a hedge from inflation, thus keeping our medium term expectations intact that point to a possible rise for precious metals. However, over the short term they could violently fluctuate.