precious metals flash

Gold posted the strongest rally in three years, after initially falling together with all other assets to 1544.40. The precious metal suddenly decoupled again and with disappointing US payrolls, as well as unemployment numbers hitting the headlines, started its rally, which would only finish 86.50 USD per ounce later at 1630.90. Talks of QE3 became louder, but seemed only to affect Gold. ETF holdings tracked by Bloomberg increased by 141’000 ounces or 4.4 tons. Net Comex longs in options and futures dropped 669’000 ounces as per last Tuesday and must have seen a large change with the strong move on Friday. Egan Jones downgraded Italy to B+ with negative outlook. Chia services PMI was lower at 55.2 suggesting they are heading for a slowdown. Die Welt, reported that Europe will come up with a Master Plan and present it at the 28-29 June summit, which could become the next major event after Greek elections and Fed meeting later in the month. The next two days should see quiet European morning as the UK remains closed for holiday. 1630 should be the current resistance for Gold and the next larger buy stops are expected at 1650. Support should come in at 1600 now.