August Gold closed up 20.2 at 1617.9. This was 22.6 up from the low and 7.8 off the high.
July Silver finished up 0.775 at 28.243, 0.127 off the high and 0.288 up from the low.
Gold was clearly lifted off a fresh wave of central bank easing hopes. However, the bear camp might suggest that gold this week has already seen gains in excess of $50 an ounce off easing views. However, gold was given an added boost by a mid morning reversal in the Dollar. With some fairly impressive gains in a host of industrial commodity markets this morning, the anticipation of easing from the ECB later this week wasn't restricted to gold and other financial markets. In retrospect, the prospect of additional easing was given even more credence by the sharp range up extension in US equities as that probably served to dash deflationary fears that might have bubbled to the surface this morning after the significant drop in Euro zone PPI readings.
With crude oil and copper flashing higher this morning it is possible that silver was garnering a lift from classic economic optimism. While silver and other physical commodity markets might be disappointed with the eventual action from the ECB and Fed in the near term a number of markets might be content to buy the rumor of action directly ahead. With the Euro managing to shake off initial weakness today, crude oil prices at times rising by more that $4.00 a barrel and September silver reaching up to the highest level since June 20th it's a good bet that silver prices were lifted by a combination of fundamental and technical developments.
COMEX SILVER (JUL) 07/05/2012: The next upside objective is 2894.0. The next area of resistance is around 2864.0 and 2894.0, while 1st support hits today at 2783.0 and below there at 2720.0.
COMEX GOLD (AUG) 07/05/2012: The next upside target is 1643.9. The next area of resistance is around 1632.4 and 1643.9, while 1st support hits today at 1603.2 and below there at 1584.4.
No comments:
Post a Comment