Gold and silver extend lowest since 2010 as stronger US dollar

Gold and silver extend lowest since 2010 as stronger US dollar

Gold and silver prices extended their losing trade run to a fourth session on Monday to trade near its lowest level in more than 4 years, with a stronger US dollar and potential likely to keep them in pressure selling technique.

Precious metals took away beat up on Friday after the Bank of Japan boosted stimulus and the Federal Reserve ended asset purchases, boosted the yen falling to a seven-year low against the dollar. Silver retreated to the lowest level since 2010.

On Monday, the dollar hit a four year high against a basket of major currencies, further aggravating bullion’s appeal as a hedge. Indian rupee opens lower at 61.49 per dollar. Most Asian currencies were trading lower. The South Korean won was down 0.59%, Malaysian ringgit fell 0.45%, Japanese yen 0.35%, Philippines Peso 0.22%, Indonesian rupiah 0.17%, Singapore dollar 0.13%, Taiwan dollar 0.1% and China renminbi 0.1%.

Gold crowned the first back to back monthly fall of 2,014 last week after slipping $ 1161.35, the lowest price since July 2010. While the Federal Reserve is now evaluating the timing of gains interest rates from other banks exchanges are taking measures to boost their economies, stimulating Bloomberg dollar spot rate for up to four years. Societe General SA and Goldman Sachs Group Inc. are among banks that expect more losses for gold.

Gold was unable to find support from the physical market on top of consuming Asia.

“The next support for gold is approximately $ 1.155 to 60 but not too much support below in the cards. If we do not recover quickly higher than $ 1,180, we are seeing this as a high degree of resistance.”

Spot gold was fell 1 percent on Monday before rebounding slightly to trade down 0.6 percent to $ 1166.95 an ounce. It fell to the lowest level since July 2010 to $ 1161.25 on Friday, before closing 2 percent.

Comex Gold for December delivery dropped as well as 0.9 percent to $ 1.161 an ounce and quoted at $ 1166.10. Futures fell to $ 1160.50 on 31 October, the lowest level since July 2010.

Silver lost as long as 2.4 percent to $ 15.7711 an ounce, the lowest price since February 2010. Both metals declined for a fourth day since the dollar rose to a seven-year high versus the yen.

“At the MCX Gold December futures declined by 0.27% on MCX at Rs 26,064 and Silver at after a sharp fall at Rs 35,402. Gold is expected to be around Rs 25,500 level in December, following which can begin to specify in greater demand resulting from lower prices.” 100McxTips bullion experts said.

 

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Posted in Commodity, MCX, Stocks Market

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