a huge wave of sale for metals in volatile week

Gold price technical analysis 30 - May, 2013

A report by Emirates NBD, the weekly prices of metals and commodities: The last week marked a strong wave of selling in most commodity markets in a volatile week. The platinum and palladium the biggest losers in the market for precious metals over the past week, while gold was able to maintain over the closing before last week’s closing slightly, closing at a price of 1663 dollars per ounce.

The report added: The interest rate expectations have changed and there were some comments made by some members of the Council of the Federal Reserve that the rise in interest rates should continue to be anticipated until the end of 2012.

The report said: It seems that those comments the official made the «quantitative easing 3» in the United States is unlikely at this stage. This scenario is one of the most difficult investment climates for precious metals in the past few years.

Environment and have demonstrated high-yield interest rates, where maintaining long-term metals more costly in terms of funding, and the potential strength of the dollar, they were negative for metals in the past, psychological and gold in particular.

Conditions of gold

The price of gold for $ 3 a week before last. And close the yellow metal at a level of $ 1663 at the end of trading week elapsed, and traded several times less than the level of 1630, but regained his recovery at the close of trading on Friday, ending the week in positive territory.

Gold and toil under pressure due to heavy selling pressure was directed towards the commodities sector. Have contributed to the interest rate outlook, the slowing Chinese economy, and the disappearance of Financial Highlights for the European sovereign debt crisis, the slowing U.S. economy recover all the great challenge in the current valuation of the commodity sector as a whole.

India was announced last week an increase in the tax imports of gold from 2 to 4% and is expected to have an impact on the size of the source in-kind gold to India. Does not believe that the strike will help at this time, when it needs to market every purchase, but the Indian Federation of precious metals put his idea. This may lead to a rethink by the Government of India.

In general, gold has done well under the current circumstances, and perhaps represents a success if the current levels has been held for a longer period, and the possible application of the linkage between the 1630 and $ 1700.

The markets were slow in kind, has been unable to bridge the gap position for the selling pressure. The process of buying in-kind by a customer base of Emirates NBD strong and encouraging, but the larger markets such as India and Shanghai did not show any positive signs.

Slightly lower for silver

The price of silver fell $ 0.28 since last week, bringing the price to 32.22 dollars. Have been trading for less than the level of $ 31.20 during the middle of the week, but he regained his recovery on Friday and closed at a level above $ 32.

It should be the treatment of silver “hybrid” treatment of industrial metals, precious, and therefore it has undergone the brunt of the pressures experienced by most of the goods. Have also been reducing futures contracts, futures contracts and the issuance of new short.

Palladium was trading at $ 653, down $ 45 from last week. Can apply to it the same comment on platinum metal, and it seems that the outlook may limit the scope of palladium 600-700 dollars. This may seem a wide range, but there are major factors is sufficient.

Strong reduction of the platinum

Platinum was trading at 1623 dollars, down from $ 44 last week. Has reduced the sale price of base metals of platinum and palladium with the manifestation of slowdown, especially in China.

And imports declined group Platinum Group Metals to China by more than 50% on an annual basis, and perhaps it may be playing a key role in the decision of the investment pool in the liquefaction of some of their contracts, futures market, and we must monitor the development of the next few weeks very closely. Platinum is trading at a discount of $ 40 for gold.