Gold prices again dipped and rallied back above $1250 per ounce in Asian and early London trade Thursday, unchanged from the end of last week with analysts continuing to point to the metal’s 200-day moving average at $1260 as strong resistance to the first quarter’s 8.6% gain.
Asian stock markets closed lower but European shares held flat overall.
The British Pound meantime held sharply below this week’s near 8-week highs on the FX market after German Chancellor Angela Merkel rejected the central proposal in UK Prime Minister Theresa May’s formal Brexit letter – handed to the European Council yesterday – for negotiations on both the UK leaving and its then-relationship with the European Union to start now and run together.
While the giant GLD gold ETF ended Wednesday unchanged in size, the SLV silver trust shrank 0.8% as shareholders liquidated stock, forcing an 85-tonne outflow – equal to more than 1 days’ global silver mine output – and taking the fund’s bullion holdings back to mid-March’s 12-month lows at 10,291 tonnes.
Trading at $18.16 per ounce, silver prices held a 2.1% gain for the week so far Thursday morning in London.
“Resistance remains firm at $1259.40 – the 200 day Moving Average,” says the daily technical analysis of gold prices from bullion clearing and market-making bank Scotia Mocatta’s New York office.
This post was published at FinancialSense on 03/30/2017.