The precious metal market begins the new month on its heels as all four metals are looking at sharp losses in early U.S. trading. A lack of physical or paper buying overnight in Asia was a precursor of what was to come as short sellers continue to feel empowered on the back of the rising USD. With gold having already fallen below support at $1,275.00, today may see bargain hunters in the U.S. support the market in the mid $1,260.00s but it would appear further losses are on the horizon as $1,250.00 should be the next target.
Despite tension continuing to escalate in the Ukraine over the past few days, palladium came under pressure as it fell almost $30.00 after touching $910.00 over the long weekend. The second half of the week brings us a press conference by the European Central Bank which appears to be poised to lower interest rates. There is even talk that an asset-backed stimulus program could be employed as they struggle with a lackluster economy. The result of the ECB policy decision is likely a continuation of the rally in the USD which could add to gold and company’s woes.
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