Demand seen on metals due to the recorded drop
Precious metals dropped throughout Friday's trading session, where gold managed to reach $1095.70 per ounce in New York; meanwhile, silver fell towards $17.05 and platinum followed and plunged to 1415.00. However, prices returned to appreciate at a time when we might find speculators and some investors in the market returning to purchase gold and precious metals; gold closed trades higher by 1.39% at $1112.40 per ounce, silver also closed with gains by 0.82% at 17.27 and platinum rose by 0.14% at 1429.00.
The drop precious metals faced managed to attract demand, which included consumer purchasing power; we also saw the dollar halt its rise against a basket of foreign currencies and crude managed to add some gains and therefore it helped precious metals find some strength. In addition, profit-taking played a major role, as investors closed on their short positions, which also helped demand on precious metals.
As for today, another bullish move is seen in precious metals; where gold is currently trading at $1114.70 per ounce as of 02:20 a.m. ET; silver is also trading with gains by 0.58% at $17.37 per ounce; whereas platinum followed and ascended by 0.35% at $1434.00 per ounce.
Stock market trades were characterized by the volatile fluctuations on Friday, whereas today a clear variation in performance was witnessed at a time U.S. indices rose following European stocks' decline; and today, the Japanese Nikkei index gained, but numerous Asian indices notably plunged. Meanwhile, crude today is trading bullishly, despite of the dollar's slight gains, while metals remain in a bullish range.
As for commodities indices the managed to count slight gains on Friday, where the S&P GSCI index, gained 2.02 points to close at 501.40; the RJ/CRB index, which is dominate by metals which barely moved added 0.01 points and end trades at 276.14. Despite of this weak performance, commodity indices could close this year's trades near their highest levels witnessed since Lehman Brothers' collapse.
Regardless of our medium and long term expectations, which remain pointing further to possible gains, the intraday and short term outlook could witness major fluctuations between the metals' bearish direction and the dollar's bullish one.