Despite expectations of a cautious approach as investors were awaiting the Federal Open Market Committee's announcement, gold started the session on the defence largely on the back of a strong rebound in the US currency. A weaker tone in equity markets combined with a violent sell off in crude have exacerbated the downward move later on and consequently gold lost $7.95 for the day. Silver showed even more weakness than gold in percentage terms losing 38 cents to settle at $16.820/oz. However, both precious metals appear to be locked in a range in the last 5 days or so. It remains to be seen if this is a consolidation phase or the upside momentum run its course at least on the short term.
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