Gold and Silver are higher as traders reverse some of Friday’s gains. Platinum pushes below $1,200 an ounce.
Bullion.Directory precious metals analysis 6 October, 2014
By Christopher Lemieux
Senior FX and Commodities Analyst at FX Analytics
Gold flirts with last years low of $1,179.4 with price action closing in on $1,180 per ounce in early trading. However, both gold and silver are positive as traders reverse some of the gains in stocks seen last Friday. Gold is back above $1,200 an ounce while silver is above $17. However, platinum is the next multi-year low victim in the metals complex, falling below $1,200 and scratching out a new five-year low.
Precious metals jumped higher from session lows the S&P 500 drops roughly nine points, and the US dollar index (DXY) fell almost .50 percent.
The dollar was trading at a four-year high on interest rate expectations out of the Federal Reserve. Gold and silver are not out of the woods, and this is likely a slight correction given the strong downside momentum. However, 2013’s low still remains a key support level, and a close above $1,200 would be a positive sign.
On September 21, I posted that silver would see some support at $16.77 (here) per ounce. A sharp price reaction to Friday’s non-farm payrolls caused prices to bottom out at $16.64, but the last two session look to have used $16.75/77 as support prior to the retracement.
Platinum reached a five-year low, after pushing through $1,200 per ounce. But, that did not last long as risk reversion during the US session caused prices to move to $1,246.
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