Precious metals are sitting tight this morning with gold moving between small gains and losses trading at 1256.70 after touching a 2014 high on Wednesday. Platinum is taking its cues from gold trading at 1378.90 while silver is marching to its own drummer gaining 133 points to trade at 19.938. Silver seems likely that it will break back above the $20 level after trading on the low end of its range for the past two weeks. Stronger industrial demand and traders taking advantage of the low prices have been buying up the commodity. Silver positing a climb of 2.2% on Wednesday touching an intraday high of $20.02 but was unable to hold above the line. Gold and silver prices are expected to trade higher in today’s trading session as recovery in ETF holdings coupled with yesterday’s release of not-so positive US jobs data will be supportive for precious metals. On Wednesday gold prices remained in a range after a choppy session as mixed bag of US data and volatile equities globally kept the prices in range. Indian jewelers are stepping up imports of finished gold jewelry from Dubai and Singapore, as a record high import tax on the metal and rising premiums demanded by sellers choke bullion supplies in the world’s second-biggest consumer. Gold prices are expected to move in a range for the day investors would await US Non-farm data tomorrow and ECB interest rate decision today. Gold remains flat in the Asian session as global equities remained volatile amid lower risk appetite and concerns over economic growth, and as investors waited for cues from US jobs data. A mixed bag of US data added to pressure from the emerging markets turmoil on equity markets, underpinning safe-haven assets such as gold and the yen.
Investors are now waiting for the Friday release of US nonfarm payrolls data, a key gauge of the labour market, as any setback in economic growth could prompt the Federal Reserve to slow the pace of its stimulus tapering. In the physical markets, traders were waiting for the return of Chinese market on Friday, after a week-long holiday for the Lunar New Year. Platinum was trading flat as government-brokered talks between mine union AMCU and the world’s three biggest platinum producers to end a two week wage strike in South Africa have adjourned to allow for individual consultations.
Base metals on the LME traded on a mixed note yesterday. While base metals gained in the earlier part of trade due to relief rally and weakness in the US dollar, the risk aversion in the markets, kept a check on gains in the later part. Also, negative economic data from the US and eurozone exerted downside pressure on prices. Copper added 10 points in this morning’s Asian session to trade at 3.203 remaining at the bottom of its trading range. Copper eased yesterday but the decline in LME inventories by 0.7 percent to 311,225 ton along with weakness in the DX cushioned sharp downside in the prices.