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.
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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