| 25 April 2012-Gold Higher, But Volume Weak |
|
Gold Higher, But Volume Weak by Todd Shriber from http://www.tradershuddle.com/ Helped by a weaker U.S. dollar and a relatively benign day of news flow out of the Euro Zone, gold was able to advance with COMEX gold for June delivery adding $11.20 to close at $1,643.80 an ounce. Spot gold was slightly higher and finished at $1,642 an ounce. Volume was about 40 percent below its 30-day norm, sharply below average for a third straight day and that came on the heels of the thinnest trading volume in a year last Friday, Reuters reported. As gold remains trading more like a risk asset than safe haven, the yellow’s metal modest Tuesday ascent was buoyed by higher U.S. equities, a weaker U.S. dollar and some strength in the British pound and euro. Blame the light volume for the Federal Open Market Committee meeting, which kicked off today and concludes tomorrow. Gold bugs all but need to hear the Federal Reserve reiterate its view that interest rates will remain low through late 2014. Hints of another round of quantitative easing would just be another bonus. Gold has not gotten the expected lift from the Hindu festival of Akshaya Tritiya. Akshaya Tritiya is a major celebration in India, the world’s largest gold consumer, but it buying there has been tepid and it has become a legitimate near-term roadblock to higher gold prices. While consumers may not be purchasing much gold in India these days, other countries are boosting their gold reserves. Mexico raised its reserves to 122.6 tons last month when gold averaged $1,676.67 an ounce, data on the IMF’s website showed. Turkey added 11.5 tons, Kazakhstan 4.3 tons, Ukraine 1.2 tons, Tajikistan 0.4 ton, and Belarus 0.1 ton, Bloomberg reported, citing data from the International Monetary Fund. Source: http://www.tradershuddle.com/ http://www.tradershuddle.com/20120425436649/Commodities/gold-higher-but-volume-weak.html |
