Metals continue to fall with possibility of more bearishness in the future
The major fluctuation within precious metals is leaning towards the downside, where gold depreciated throughout yesterday's trading towards $1115.20 per ounce before returning to slightly ascend to close at 1128.10 down by 0.02% in New York; while silver's plunge was more volatile, where it took silver towards $17.37 per ounce as it achieved its lowest at $17.09 per ounce in NY. Meanwhile, platinum was able to record some gains to close at 1415.00, as a demand rush was seen when the metal hit the psychological barrier of $1400.00 per ounce.
Today, we see that precious metals remain near closing levels in New York yesterday, but while slightly leaning towards the downside; gold today seems to be trading at $1126.80 per ounce, where it had dropped to $17.32 per ounce; finally, platinum plummeted by 0.07% to trade at 1414.00.
Meanwhile, stock indices yesterday highly fluctuated and ended with slight gains; at a time when European stock indices fell. However, today we clearly see that Asian indices are trading in a bearish slanted direction. While, profit-taking waves are constant in financial markets, increasing volatility for precious metals, while speculation in the market alongside safe haven and reserve demands is still seen; thus, making the present correction quite strong.
The dollar's is consistently trading within high levels against a basket of foreign currencies; whereas crude is trading near $70 per barrel, falling from its highest levels this year above $80 per barrel and therefore encouraging profit-taking. On the other hand, commodity indices clearly dropped throughout yesterday's trading session; the S&P GSCI index, which is highly impacted by energy commodities, declined by 9.85; the RJ/CRB index also dropped by 4.15 and notably affected by precious metals.
After the major volatile speculations that had was seen across financial markets; expectations for the shiny yellow metal is that it could return to levels between $1035.00 - 1000.00 per ounce, due to the continuity of profit-taking. Despite of that, the medium term direction is still favoring further bullishness, yet temporarily as the appetite for risk depletes and speculators are widely profit-taking throughout precious metal markets, could cause more declines.