Precious Metals are being assailed by the Dollar and Oil
Oil's five-day bearish streak amid anticipations of an increase in reserves, and the dollar's steady rise and speculative profit taking have pressured precious metals into a downhill course in yesterday's and today's trading. Gold had closed with a 0.46% fall at $1156.00 despite opening with a gain this weak, while silver had lost 0.92% to close at $18.22 per ounce.
A stronger dollar and a five-day retreat of oil have advocated traders to engage in profit-taking, thus triggering the descending wave for precious metals. Commodities in the mean time have risen yesterday, where the S&P GSCI index climbed 0.39 to close at 542.52, while RJ/CRB had closed at 276.20 recording a 0.07 point rise. Commodities did however fall in New York trading, though this fall was not enough to bereave them of the points they had acquired.
Precious metal and oil have been declining today, while the dollar is taking the opposite path. Gold is trading at $1152.80 with a loss of 0.28%, as silver is recording a 0.55% retreat and trading at $18.12 at exactly 2:23 EST. Though platinum emerged with a positive ending yesterday, yet trading 0.52% lower today at $1715.00 per ounce thus loosing yesterday's gains.
Rising stock indices were one of the main reasons behind the profit-taking surge for investors in precious metals, though it is worth to mention that the stock market has been somewhat turbulent witnessing a slight fall after a positive opening as in the case of Nikkei that dropped 0.81% today. Stocks incline to extreme altitudes is greeted by caution in the markets, where corrective movements might causes a stampede of profit-taking from investors and speculators who are anxious to abandon their investments. Thus, we see the turbulent trading that is ought to leave a trace on the precious metals market.
The general trend in precious metals is still upward as anticipated, though speculation can be seen to affect the movement and demand on the metals, so we don't exclude the possibility of more bearish movement throughout the day and maybe even the week. Oil and the dollar must be scrutinized, being the main factors that affect the precious metals in the time when fears over the Greek government default start to ease.