By Jon Nadler
Gold prices headed back towards the $885 obstacle as the trade returned from various egg hunts in search of the golden one. The metal was thus far unable to penetrate above the $890 mark and the effects of a declining dollar were largely offset by falling oil prices as it was concerned.

The yen fell to a six-month low against the US dollar and analysts are interpreting the drop primarily to a palpable easing in the global crisis. Japan, however, along with the ECB, are is studying unorthodox measures to get the domestic economic ball unstuck and rolling.

Indian Gold buyers quickly turned apathetic when bullion prices rebounded from recent lows. In effect, the locals are telling us that they will be once again interested when prices get down to the $845 area. Keep in mind that two weeks from tomorrow, the most auspicious date to load up on bullion rolls around on the Indian calendar. Thereafter, there is little on the horizon to offer from the gold offtake camp.

At any rate, India's absence from the gold market table may not be the factor du jour in this post-G20 environment.

Bloomberg reports that "Investor Jim Rogers said he prefers oil over gold as he believes the International Monetary Fund will sell its reserves following the recent rally in the precious metal. “The IMF is trying to sell its gold,” Rogers, chairman of Singapore-based Rogers Holdings, said in an interview with Bloomberg Television. “The IMF is one of the largest holders of Gold so you’ve got this huge supply overhang. Whether they sell it or not, the world is expecting them to sell it.”

Mr. Rogers correctly seized on the psychological impact of the recent spate of official sector gold mobilization talk. Its not the tonnage (as yet); it's the intent to use the tonnage at all, that has some analysts scaling back on gold price projections made during the ultra-gloomy first quarter of this year.

New York spot gold dealings opened with a $6.7 gain this morning, quoted at $885.90 per ounce amid thinned-out trade and participants watching for (but not getting) anything in the way of impactful news. General Motors' imminent filing for bankruptcy appears to be baked into this month's news cake. Gone Motors by June 1.

Silver opened with a 12-cent gain at $12.45 per ounce, but the speculative fund buyers set the Platinum market ablaze this morning.

The metal surged by $46 to $1233 in the absence of any positive fundamental news. Palladium followed suit, but managed only a $4 gain to $236 per ounce. Such pops do not end well, normally.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook