Precious metals lazy from the lack of data
Yesterday was mainly free of any economic data in the market. Nonetheless, the general sentiment remained negative and was reflected by the performance of most markets.
The already weary markets continued to fall yesterday, as the Dow Jones dropped 1.16%, while S&P 500 fell 1.35%. The dollar remained relatively unchanged as the gauge that measures the greenback's strength against six major currencies closed slightly changed at 88.44 from the opening of 88.34.
Of course the dollar wasn't the only shield in investors' arsenal, as jittery markets pushed their demand for a golden safe haven. The yellow metal closed at a 1215.90 yesterday after opening at 1179.30.
Silver was tangled between two strings, one pulling it upward as a safe have and the other tugging the other way due to the industrial properties of the metal. The second force seemed to be the strongest, as silver made a slight drop closing at 18.55 compared to the opening 18.65.
Let's not forget that silver is a popular tool for speculation, which may have also contributed to the metal's drop. This gains more credibility when we look at platinum that holds the same stance as silver, as it is a precious metal and also a component in industry. Platinum closed at 1512.00 with a gain of 0.13%.
The Fed's Chairman Ben Bernanke's speech yesterday fed the market with some optimism. His late night comments assured the gradual American economic recovery which was reflected today by Asian stocks, where Nikkei has gained 0.18%. The positive wave is also sweeping through the European markets at the moment, where all major stock indices opened in the green as in the example of the DAX which has ascended 0.14%.
However, gold has still maintained its prior upward course, overcoming the positive sentiment in the markets that was only able to slow the yellow metal down rather than reversing its movement. Investors are still anxious after the U.S. labor report, while the European debt crisis provides constant lift to precious metal especially when with new countries joining the Greek club, as in the recent case of Hungary.
At exactly 03:14 EST gold was trading higher by 0.10% around 1242.00. Silver is following the path of its yellow companion and climbed 0.35% to 18.22; while platinum added 0.8% up the ladder to 1524.20.
The intraday movement for precious metal is expected to remain to the upside, as lack of significant data that affects the market provides relative stability amid ongoing investment, speculative and haven demand powers.