Gold barely moves in subdued activity
PRICES were barely changed from overnight in London's precious metals markets yesterday with no real incentive for dealers to take up fresh positions.
Largely neutral technicals, low volatility and a featureless currency market were some of the reasons behind gold's lack-lustre start, dealers said.
'We barely booked a single deal,' a dealer at a major bullion bank said.
Bullion was fixed at US$383.80 per ounce, having fixed at $383.85 on Monday, a level which was straddled later in quiet New York and Asian markets.
There was no sign of Australian producer selling, which had stopped any modest upside ambition on Monday.
'The liquidations on Monday in silver pointed to the downside for the precious metals,' one dealer said.
On Monday, dealer selling of silver took it down through a trend line at $5.37 and put some brief pressure on interim support in the mid $5.30s.
However, yesterday it had barely moved from its unchanged opening at $5.36-$5.38.
The probability was for a move to test the more significant $5.30 support.
'The support at $5.30 has got to hold or silver will go to the 200-day moving average at $5.21 next,' an analyst said, adding that converging trend lines meant resistance at $5.65.
'I'd only get really interested if these levels break,' she said.
The gold-silver ratio was at 71.60, above support at 70.20 and drifting in a narrow band, analysts said.
Platinum was a little weaker overnight but was unlikely to greatly trouble the $409-$411 support which had held during its recent speculative clear-out, dealers and analysts said.
In Tokyo, yen-based gold futures closed lower in all months with prices staying within a narrow range because of a lack of market-moving news, traders said.
Prices were three to six yen per gram lower. Benchmark August ended down six yen at 1,227.
'The New York market and the dollar-yen rate gave no clear direction for the Tokyo gold futures market,' one trader said.