Gold remains under pressure around $1200

Thursday, October 23, 2014

Precious metal prices were mixed. Gold spot extended losses below $1230/per ounce, as global equity markets rebounded. On the other hand, silver edged higher to retest $17.30 and palladium climbed and breached above $780. Randgold, Fresnillo and Anglo American came under renewed pressure in today’s session in the London equity market retreating between 0.5% and 2.1%.

Gold Spot has been heading towards $1200/ounce

XAU Curncy (Gold Spot   $_Oz )  2014-10-23 17-11-25

 

Base metal prices reversed and traded lower today with the exception of copper which surged nearly 1% to retest 6,700.

LME Copper 3M retests $6700

LMCADS03 Comdty (LME COPPER    3 2014-10-23 16-51-18

Crude oil prices rebounded strongly following yesterday’s sharp losses. The WTI front month futures climbed over 1.7% higher towards $82 per barrel, while Brent front month futures breached above $86 per barrel. Royal Dutch Shell and BP extended gains and rose 1.12% and 1.08%, respectively.

European equity markets climbed higher and extended gains in today’s session, tracking solid gains in the US equities. The DAX, CAC, IBEX and London equity benchmark gained between 0.3% and 1.2%, while the euro held around the 1.265 against the US dollar.

DAX Index 

DAX Index (Deutsche Boerse AG Ge 2014-10-23 17-13-41

On the macroeconomic front, the US macroeconomic indicators were fairly mixed following a rise in the house price index but weaker than expected weekly employment figures. The Chicago Fed national activity index was reported at 0.47 in September beating analysts’ expectations of 0.15, while the FHFA house price index rose by 0.5% in August compared to a modest increase of 0.1% in July, beating estimates. However, the Markit manufacturing PMI preliminary number was reported at 56.2 in October versus analysts’ estimates of 57.0, while initial jobless claims rose 283,000 for the week ending 18th October, 2014, against expectations of 281,000.

Following the release of key macroeconomic indicators, the USD index surged towards 86.0 but gave back part of earlier gains and consolidated around 85.7 after a general mixed market sentiment. 

USD Index 

DXY Curncy (DOLLAR INDEX SPOT)  2014-10-23 17-14-51

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