Gold opened at 1089.75/1090.75 in New York. Better than expected US productivity and fewer jobless claims caused equity markets to rally and helped gold gather momentum, finding resistance near 1092.00. The metal traded erratically in a narrow range, retreating to a low of 1086.50/1087.50 near the London fix. It recovered from its lows on light buying, reaching an intraday high of 1093.00/1094.00. Overall it was a very quiet day as investors moved to the sidelines in anticipation of tomorrow’s key economic data.
Silver opened at 17.40/17.43 and peaked early in the morning, with highs at 17.51/17.54. Like gold, silver remained range-bound all day and it found resistance near 17.50. The metal dropped to its low of 17.33/17.36 mid-day, on the back of weaker oil prices. After a lackluster day, silver closed at 17.37/17.40.
Gold has pulled back marginally to 1091 from yesterday’s record close. Today's price action is showing as an "inside day" with the range of 1084 to 1094 compared to yesterdays 1080 to 1097. We believe the market will buy dips in Gold to 1070 with sellers seen at measured move target of 1106.
Silver is largely unchanged today at current 17.40. Tuesday’s high of 17.32 is holding the base with topside resistance at yesterdays high of 17.61. The strong up move on Tuesday keeps the risk skewed to the topside with 18.02 a major barrier. The Gold Silver ratio is holding steady near 62.72. At the moment we see this ratio holding within a 62.02 to 64.14 range.
