Gold weak with potential downside, silver bouncing since Asian session
Bullion.Directory precious metals analysis 22 August, 2014
By Christopher Lemieux
Senior FX and Commodities Analyst at FX Analytics
Gold and silver were steady in early trade, as traders look to Federal Reserve Chair Janet Yellen’s speech today at 10:00AM EST.
Gold, up .27 percent to $1,378.90 per toz., still remains weak with downside potential to demand zone of $1,365/70. Silver, up .04 percent, has bounced back-and-forth between negative and positive territory since the Asian trading session.
Precious metals have taken a beating recently because traders await for clues from the Fed on when the central bank could raise the Fed funds rate above their near-zero rate for the first time since 2008.
“Relative calm has been restored to the gold market ahead of the much anticipated Fed symposium later today,” said USB analyst Ed Tully.
The swift declines will bring in physical buyers, which should help stabilize price action in the futures markets.
Nonetheless, gold still remains a top performer in 2014, up 6.6 percent, with conflicts throughout the Middle East and Ukraine sparking safe-haven demand.
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