by World Gold Council
Posted: August 6, 2004
The thinning summer vacation market and the ongoing lack of direction amongst traders has lead to an increasing sense of tunnel vision as gold works within steadily narrowing price ranges. The yellow metal was held to a $2.75 range yesterday as trader tracked the slowly moving dollar with traders appearing happy to sit on their hands ahead of today s non-farm payroll data. Gold began the day at around the $392 level and gradually worked to its high of $393.25 as buying emerged from early European traders. The metal didn t stay firm for long as gains in the dollar reversed the mood, pushing the metal back to $390.60 shortly after the COMEX open. Scattered buying from various sources prevented further falls and eventually lifted the market back to $392.25 by the close of the day. Continued mixed interest today has kept the metal trading $392-2.70 as traders await the US payroll data due out later today for an indication of market direction. Should the data be dollar friendly i.e. 300,000plus then I would look for a dip to $385 while a dollar negative number, sub 200,000, would see gold test the 100 and 200-day MA $397.20 and $399 respectively.
The re-emergence of fund buying interest across yesterday s COMEX session helped lead to a retest of the $6.75 level after the metal saw selling pressure during European trade which pushed the silver back to $6.60. Silver closed the day at $6.72 and has traded largely unchanged so far today and as with the other is really waiting for today s US data release for short to medium-term direction.
Both the PGM s have continued to see range play over the past 24-hours. Platinum seem content trading $825-30 while palladium remains confined to the $210-20 trading range.
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