March Silver finished down 0.602 at 29.522, 0.428 off the high
and 0.102 up from the low.
The gold market saw a softer start today on what appeared to
be standard profit taking selling. However, gold came under additional pressure
in the wake of rumors predicting European credit ratings downgrades over the
weekend. With the dollar forging an upside breakout, Treasuries rising sharply
and equity markets under pressure today, gold was probably seeing some risk-off
type liquidation selling. Seeing a favorable US consumer sentiment reading was
all but lost in the shuffle as the markets were simply in a mood to embrace
fresh Euro zone fears. Because of the Euro centric focus today, the gold trade
seemed to discount talk of possible upcoming QE3 from the US and the trade also
didn't give much credence to predictions of upcoming Chinese central bank gold
buying.
From the high Thursday to the mid morning lows in March
silver, prices fell by roughly $1.25 an ounce but the bear camp initially had
trouble keeping silver prices down. However, it did seem as if macro economic
sentiment at the end of the week deteriorated from the levels seen early in the
week and that probably served to apply some pressure to silver and other
physical commodity markets today. In addition to sagging macro views, silver
also saw pressure from currencies and equity market action
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