Metals Down for Third Week as Growth Forecast This Week Posted by Adam King on October 29, 2012
Gold continued lower last week, going into its third week of decline totaling 0.7 percent down for the week, to support around the $1,700 level that continued in trading early Monday.
The sluggish trend in precious metals is often attributed to a lack of upside drivers as markets struggle for a clearer sense of the global economies direction, especially from troubled areas like the European Union. In New York on Monday, market floors are closed and public transit is shut down as Hurricane Sandy makes its way up the East Coast.
Silver lost 0.2 percent last week, platinum decreased by 4.3 percent, and palladium dropped 4.4 percent.
Peter Fertig, owner of Quantitative Commodity Research Ltd., based in Hainburg, Germany, said the losses in precious metals are related to current risk-off trading. He added that there is a firmer U.S. dollar and precious metals are partially affected by the fall in other commodities.
Gold prices steadied near $1,710 per troy ounce in early trading Monday, the spot price of gold down 0.1 percent to $1,709.30 per troy ounce as U.S. gold futures for December delivery lost $1.90 per troy ounce to $1,709.90.
Gold surveys dated one week ago registered a cautious attitude among precious metals dealers and traders with many correctly forecasting the lower prices. The latest weekly gold surveys, however, are more bullish.
Kitco is report that out of 33 participants in its Kitco News Gold Survey, 24 responded with nine seeing prices up, five seeing prices down, and 10 neutral or forecasting a sideways market.
Those Kitco surveyed who said prices will move sideways or are neutral on price direction claimed a fair amount of uncertainty still present in markets could keep buyers sidelined and cause prices to become trapped in a range.
Bloomber also released a gold survey, which was the most bullish for gold in three weeks with 14 expecting higher gold prices this week, 9 bearish, and 3 neutral.
Year-to-date, precious metals including gold have gained 9.3 percent with silver at 14.8 percent and platinum at 10.0 percent.
Non-farm payrolls data will be released later in the week and could be a driver for gold.