A pattern of lower highs has remained in place in the gold bullion market and with Gold Bullion prices showing 1st negative divergency with the remainder of the metals complicated in the early going today , that has to give the bear camp some added confidence.
Gold Bullion Market
While there were some stories touting easing by the Chinese central bank overnite, credible easing evidence from the FOMC or the PBOC would seem to be mere supposition at the existing time. While gold appeared and rare coins to recover yesterday in the wake of the galvanizing recovery effort in US equities, it might take a series of noted gains in equities to countervail numbers from the US this week that usually pictured a slowing of momentum in America recovery.
Some gold players are looking ahead to the Spanish debt auction Thursday with some fear, as the phobia of a resumption of EU debt issues remains a gold bullion market factor. While gold bullion hasn’t paid that much attention to physical supply side reports lately, it is possible that reports of a sharp rise in quarterly gold bullion production at a Mexican miner has fostered some of the original weakness in gold bullion prices this morning. Unfortunately the US economic report slate today does not look to supply much in the way of direction today and so gold and other physical commodity markets may have to take some direction from equities and currencies. Frustrated bulls continue to hang on hope of easing evidence but unfortunately that might need an ongoing pattern of slack and soft US information. Comex Gold bullion Stocks were 10.994 million oz up 899 oz.. Stocks have decreased Twelve of the last Twenty days.
Gold bullion, Gold vault image 3—Bank of England (Flickr.com)
OUTSIDE MARKET DEVELOPMENTS : ( Six hundred AM CST ) Asian equity markets were stronger overnight, with Chinese speculators relieved with the lack of disconcerting stories flow from Europe. The Asian trade might also have seen some lift off US earnings stories and there also seemed to be some ongoing hopes of easing from the PBOC. Western european markets were weaker to start today on what seemed to be a classic profit taking reversal. Early in the USA trade today share prices were mixed, with the markets somewhat unhappy by tech sector takings news yesterday afternoon. The US business report slate today is rather thin, with a once-per-week mortgage application survey released early in the trade and small else on the docket. There will be a series of comments from the US Treasury Secretary and World Bank officials today.
Gold Bullion Market Recap Report
The gold and Precious Metal market spent a large piece of the Wednesday trade in lower ground. Some traders recommended that many physical commodity markets were looking ahead to the Spanish debt auction with concern as higher yields on the debt offerings Thursday morning might whip up a definitive risk off vibe. While June gold bullion managed to hold above the prior session’s low, seeing costs drift down toward a breakout might have given the bear camp some added resolve today. While the BOC wasn’t threatening to implement tightening moves soon with their dialogue today, most physical commodity markets have tiny toleration for anything besides easing talk. With equities weaker, Treasuries higher and adverse forex market action the Gold Bullion trade was simply presented with an overall bearish outside market environment.
