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Gold & Silver Breaks Down



Gold prices fell on Friday after the U.S. government reported that the economy picked up more jobs than expected in May, which strengthened the dollar.


Gold and the dollar tend to trade inversely with one another.


On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were down 2.68% at USD1,377.85 a troy ounce in U.S. trading on Friday, up from a session low of USD1,377.35 and down from a high of USD1,417.45 a troy ounce.


Gold futures were likely to test support USD1,374.75 a troy ounce, the low from May 28, and resistance at USD1,423.25, Thursday's high.


The Bureau of Labor Statistics reported earlier that the U.S. economy added 175,000 jobs in May, beating expectations for an increase of 170,000 and up from the 149,000 jobs created in April.


The headline U.S. unemployment rate ticked up to 7.6% last month from 7.5% in April, and even though analysts were expecting the unemployment rate to remain unchanged, markets applauded the data and took up dollar positions.


The data bolstered the dollar by allaying concerns that the Federal Reserve will keep monetary stimulus programs in place for longer than once anticipated, including its USD85 billion bond-buying program that weakens the greenback to spur recovery, making gold an attractive hedge.


The Fed has said it will pay close attention to the labor market when deciding on monetary policy.


Elsewhere on the Comex, silver for July delivery was down 4.29% at USD21.733 a troy ounce, while copper for July delivery was down 1.58% and trading at USD3.267 a pound.

Silver As predicted earlier is an downtrend and any up move should be used to sell till it crosses 23.5 $ on a closing basis

Result is on the Screan in front of everyone Silver 21.5 below 21 next major support shall be 20 $ .

There is not major fall in rupee terms because of the strength in the dollar .

Comments

  1. Abhikhos2711 June 2013 at 18:08

    Silver falls and takes support as predicted around 21 dollar the indian ruppee has weakened had it been on 56 we would have silver down 1500 Rs / Kg

    ReplyDelete
  2. Abhikhos2720 June 2013 at 17:47

    Silver As predicted Below 20 $ and Saved by Depreciation in the Indian Rupee

    Going Further

    There can be a depreciation in the Dollar but there shall be Some Recovery in the International Prices So Buy Now and Sell Higher Later Soon

    ReplyDelete

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