Dynamics
On Wednesday, Jan. 27 quotes for gold and silver have completed trades with a decrease in value against the background of strengthening U.S. dollar on the foreign exchange market, FOREX, and also due to the fall of neighboring markets and the weak dynamics of the stock pads.
As a result of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes gold futures dropped 13.80 to 1085.70 on dollars per troy ounce, quotes, silver futures fell 42 cents to 16.44 dollars per ounce.
Causes
On Wednesday 27 January futures on precious metals have completed trades with a decrease in price under the following factors: 1 - strengthening of the dollar in the FOREX market against the backdrop of economic makrostatistiki and news (the real estate market - new home sales reached a 9-month minimum fell to 7.6%, taking into account seasonal correction of up to 342,000 in December compared with 370,000 in November), 2 - weak dynamics of the stock sites, where U.S. stocks rose, restoringthe losses after the Federal Reserve reiterated its promise to keep interest rates low “indefinitely”, as well as on the background of strong corporate reporting (Dow Jones industrial average - 10236.16 (41.87, or 0.41%), Nasdaq Composite - 2221.41 (17.68, or 0.80%), SP 500 - 1097.50 (5.33, or 0.49% )), 3 - negative dynamics of the neighboring markets, namely the falling price of oil market; 4 - technical reasons - the speculative market participants, who had previously bought futures on gold, have to sell them, compensating for the position and fixing the profit before the end of the Fed meeting and statement Obama.
drop in prices of platinum group metals contributed to the alignment positions. Additional pressures on these metals are also likely to have had a decision the company Toyota Motor Corp to suspend the sale of eight cars. Platinum and palladium are used in catalytic converters for cars, and therefore react to the situation with sales and production in the automotive industry.
From news can note that the Australian company OZ Minerals Ltd. in the 4th quarter made from ore mined in the hydrothermal deposits Prominent Hill, working out which began in February 2009., 36,5 thousand tons of copper in concentrates, resulting in total production in 2009. amounted to 96,3 thousand tons of copper. In addition, for the year were produced 75.5 million ounces (2.35 tonnes) of gold and 700.2 million ounces (21.8 tonnes) of silver. Company intends to 2010-2012. achieve production of 100-110 thousand tons of copper a year. Currently, OZ Minerals is a detailed exploration on the Australian copper deposit Western Copper and prospecting in the gold deposit Okvau the north-eastern Cambodia. However, in 2009. company sold its 75% stake in the project Chatri in Thailand.
What to expect?
Traditional purchase of precious metals in the early years of the funds, the overall improvement in investor sentiment, as well as decrease the U.S. dollar will provide sustained support to the quotations of gold and silver. However, the situation could change dramatically if the dollar will resume its strengthening, as the inverse correlation between the dollar and the prices of precious metals continues.
Why worry?
volatile changes in the currency market may be reflected in the sharp fluctuations of prices for precious metals.
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