Gold moved between small losses and gains this morning after taking a major tumble on Wednesday after Janet Yellen’s comments assured traders as sentiment shifted to risk on trading. Even though problems in the Ukraine continued Russian President Putin is now aggressively trying to turn the down the temperature as violence continues. Speculators were buoyed by comments from Russian President Vladimir Putin. He urged separatists in Eastern Ukraine to delay a vote on independence and said, in a significant shift, that the Ukrainian election to be held on May 25 was a step in the right direction — but talks should be held with separatists first. Finally, Putin said that Russian troops had pulled back from the Ukrainian border.
Gold is trading at 1290.20, while silver gave up 54 points to trade at 19.288. Platinum gained a few dollars to trade at 1438.75 dealing with strikes and other problems outside of precious metal safety. Palladium gained $2.70 after a strong Chinese import export release. Palladium is trading at 799.70. Yesterday commodities were mixed again — metals finding themselves offered, with gold down $18.5 to $1290 on the Fed’s more upbeat comments on the economy and as Russian troops pulled back from Ukraine. Silver fell 1.5 per cent and copper was down 0.8 per cent.
Janet Yellen noted in comments to the Congressional Joint Economic Committee that “many recent indicators suggest that a rebound in spending and production is already under way”. However she was less enthusiastic about the housing market, noting that recent indicators showed a flattening out could prove to be permanent. At the same time Yellen assured everyone that rates would remain low for a very long time yet. She wisely dropped her previous comment that rates would rise in six months, noting when asked when rates would rise, “I’m afraid I can’t give you a timetable”. Gold fell 28 percent in 2013 to end a 12-year rally, on expectations the Fed would scale back asset purchases. Chair Janet Yellen yesterday told U.S. lawmakers in Washington that the world’s largest economy still needs stimulus even as data supported the outlook for faster expansion this year. The central bank has announced cuts to bond-buying at each of the past four meetings.
Gold has rallied 7.4 percent this year in part as tension in Ukraine spurred haven demand. Russian President Vladimir Putin called on separatists in Ukraine to postpone a vote for autonomy and said he’s pulled Russian troops from the country’s border after weeks of tension, as the U.S. said there’s no sign of a withdrawal.
Copper gained 5 points to trade at 3.041 after Chinese data this morning caught traders off guard with a surprise in exports and imports. Overseas shipments increased 0.9 percent from a year earlier, when figures were inflated by fraudulent invoicing, data from the Beijing-based customs administration showed today. That compared with the median estimate for a 3 percent drop in a Bloomberg News survey of analysts. Imports gained 0.8 percent, leaving a trade surplus of $18.46 billion.