Precious metals prices retreated modestly in thin trade on Thursday, with the price to invest in Gold easing 0.41 percent or $5.20 to close at $1,249.50 an ounce, as U.S. markets were closed in observance of the Independence Day holiday, and investors remain sidelined awaiting Friday's jobs report. The price to invest in Silver dipped 1.06 percent or $0.21 to close at $19.55 an ounce, while the Gold/Silver ratio, the number of ounces of Silver it takes to buy one ounce of Gold, edged higher to 63.91, as Silver under-performed Gold.
The dollar firmed on Thursday on news that the European Central Bank (ECB) will leave its key interest rates unchanged with a pledge to keep future rates at record lows for an "extended period" while leaving the door open for further cuts. “What the Governing Council did today was to inject a downward bias in interest rates for the foreseeable future. Our exit is very distant,” said ECB President Draghi on Thursday.
"The market is looking towards payrolls for direction," said Victor Thianpiriya, of Australia and New Zealand Banking Group. ANZ is looking for non-farm payrolls to fall short of market expectations. "A downside surprise to the nonfarm payroll numbers will result in sharp short-covering as the market remains short." The Fed has made it clear that future tapering of its quantitative easing (QE) program will only follow sustained job growth. “The labor market is the key focus of the Fed’s decision-making process with regard to tapering its monthly asset purchases,” said Andrey Kryuchenkov, of VTB Capital, in a report.
Meanwhile, with Gold prices hovering near three year lows and production costs currently at $1,201.00 an ounce, on average, according to a recent report by Bloomberg Industries, many Gold producers are finding it difficult to remain viable as they operate on razor thin profit margins. While some mines produce Gold at an affordable cost some are now producing Gold at costs higher than the metal is currently valued, this cannot continue for long, prices must rise.
One of the world's biggest Gold producers, Barrick Gold, was recently forced to lay off almost 500 administrative workers and it looks like it could be just the tip of the iceberg.
Precious metals prices retreated modestly in thin trade on Thursday, with the price to invest in Gold easing 0.41 percent or $5.20 to close at $1,249.50 an ounce, as U.S. markets were closed in observance of the Independence Day holiday, and investors remain sidelined awaiting Friday's jobs report. The price to invest in Silver dipped 1.06 percent or $0.21 to close at $19.55 an ounce, while the Gold/Silver ratio, the number of ounces of Silver it takes to buy one ounce of Gold, edged higher to 63.91, as Silver under-performed Gold.
The dollar firmed on Thursday on news that the European Central Bank (ECB) will leave its key interest rates unchanged with a pledge to keep future rates at record lows for an "extended period" while leaving the door open for further cuts. “What the Governing Council did today was to inject a downward bias in interest rates for the foreseeable future. Our exit is very distant,” said ECB President Draghi on Thursday.
"The market is looking towards payrolls for direction," said Victor Thianpiriya, of Australia and New Zealand Banking Group. ANZ is looking for non-farm payrolls to fall short of market expectations. "A downside surprise to the nonfarm payroll numbers will result in sharp short-covering as the market remains short." The Fed has made it clear that future tapering of its quantitative easing (QE) program will only follow sustained job growth. “The labor market is the key focus of the Fed’s decision-making process with regard to tapering its monthly asset purchases,” said Andrey Kryuchenkov, of VTB Capital, in a report.
Meanwhile, with Gold prices hovering near three year lows and production costs currently at $1,201.00 an ounce, on average, according to a recent report by Bloomberg Industries, many Gold producers are finding it difficult to remain viable as they operate on razor thin profit margins. While some mines produce Gold at an affordable cost some are now producing Gold at costs higher than the metal is currently valued, this cannot continue for long, prices must rise.
One of the world's biggest Gold producers, Barrick Gold, was recently forced to lay off almost 500 administrative workers and it looks like it could be just the tip of the iceberg.
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GOLD CURRENT TRADE
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BGT 0.20 Standard Lot Gold at 1210.46 stop 1180.35
GOLD CURRENT TRADE
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BGT 0.20 Standard Lot Gold at 1210.46 stop 1180.35
on July 05/2013
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YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
