The price of gold has been relatively flat for the first few days of this week, trading mainly between $ 1,360/oz and $ 1,370. Gold fell on Friday as China’s central bank to raise the lender’s cash requirements. This and a lack of safe-haven demand weighed on the price of gold fell to a low of $ 1,354 week on Monday afternoon.
Currently, there are two conflicting markets for gold, spot prices and ETF movements have not been with consumer demand. While prices fall, the consumer appetite for bars and coins are still strong and Premiums in Asia remains at 2 year highs. For example, Hong Kong s.a.r. struggling suppliers to meet demand, sellers hold out for higher prices for their scrap gold.
This requirement has provided some support for the yellow metal but analysts still room for further losses in the short term. Most are still long-term bullish and general market consensus seems to be that a dip in the price of gold was necessary to make the benefits more sustainable.
Echo thoughts of many other traders Tom Kendall, analysts from Credit Suisse told Reuters: “we are positive on gold for the year as a whole, but there will be a bit of a bumpy road, certainly in the first three or four months of the year. We see a lot of uncertainty in the direction of the markets in General, especially on forex “.
Silver fell on Monday to $ 28.00/oz but began recovering on Tuesday. Gold-silver ratio continued to back up from last month’s 4-year low, show that silver has crisis management gold so far this year.
Platinum remained near its high of $ 1,826/oz 2 ½ years, reached on Friday last week, while palladium recovered from earlier losses and headed back toward a 10-year high above $ 800/oz.
All data and quotes obtained from Reuters.