Gold Prices Dive into the Abyss

Gold Prices Dive into the Abyss
Gold Prices Dive into the Abyss

The sink in holdings on ETF products led to a decline in gold prices. This is the worst slouch for the metal in 3 years, seen last in March 2009. The USD on the other hand, traded stronger, which the U.S. Federal Reserve Policy makers say may fall further. The Friday Asian Trading session showed a decline in the price of gold.

For the New York Mercantile Exchange’s Comex Division, the gold futures for June delivery fell by 0.03% at USD1,386.45 a troy ounce. The previous session traded at a low of USD1,382.95 and a high of USD1,444.15. The futures for this yellow precious metal was likely to find support at USD1,323.00 a troy ounce, based on the low from April 16 and resistance at USD1,444.15.

Meanwhile, silver for July delivery plunged by 0.13% to $22.630 a troy ounce. Copper for July delivery climbed by 0.05% and traded at $3.288 against the pound.

On Friday, oil prices fell in the Asian session. On the New York Mercantile Exchange, the futures for sweet crude oil moved down by 0.10% at $95.06 a barrel. The previous high for this was seen at $95.20 and the low at $95.03.

Palm oil, moved up for a second time in a week, based on anticipations that the second largest producer of this commodity, Malaysia, may trim stockpiles and rebound soon.

Grain growers in Western Australia are speculated to see an increased base on rain forecast in the coming days, while winter sowing there has already begun. Meanwhile in Chicago, wheat saw its second weekly loss due to a warm, dry weather forecast in the U.S., which is the biggest exporter. Futures traded at 12% lower this year, which is USD6.8725 a bushel.

Steel reinforcement-bar futures moved for its weekly loss due to the drop in prices of iron ore to its lowest seen in five months. Rebar for October Delivery slipped by 0.6% to 3,529 ($575) a metric ton. Futures this week have gone down by 3%, the worst since April 19.

Copper declined, while zinc and nickel for LME, showed positive trading this week.