COMEX Gold & Silver

COMEX Gold

Short Covering, Technical Buying Send COMEX Gold Sharply Higher.

The combination of bargain hunting, short covering, a softer U.S. dollar and a break of nearby chart resistance enabled gold futures to spurt higher. COMEX June gold was up $19.10 to $1,383.80 an ounce and was as muscular as $1,397.90.As per Vision Financial Markets Research Analyst,Bargain hunting occurred in the wake of the earlier weakness, which took the metal as low as $1,336.30.A retreat in the U.S. dollar, which has been stronger lately he added. The June dollar index was down 0.312 point to 84.075.HSBC analyst noted that We have seen some heavy short covering.  Citi Institutional Client Group futures specialist, adding that technical buying was encouraged on a break through chart resistance in the $1,364 area. When were able to stay above that, we found stops,"It looks like a technical move.

COMEX Silver

Silver Tumbles To Longtime Low Overnight, Then Bounces Sharply

Silver fell to its lowest level in 2 ½ years overnight before bouncing sharply from the lows. Spot metal fell as far as $20.303, the low since September 2010, yet was back up to $21.73 ,although still down 62.2 cents for the day.It is likely that the very aggressive selling in illiquid Asian markets overnight was a large hedge fund or bank or a combination of hedge funds and banks with deep pockets,by the Gold Core bullion dealer.Technical selling was triggered.In extremely thin conditions, the grey metal was smashed lower from the start breaking the $22.00-22.15 support zone a triggering a wave of stops,senior trader of precious metals and foreign exchange with MKS Capital.With nothing but air below this level, the metal plummeted to one of the largest momentary losses on record, falling 10% in the space of a few minutes." However, Gold Core reported that, the metal has since snapped back by some 7%. Gold core reports lower prices may well mean increase physical demand.Premiums for coins and bars remain elevated and there continue to be delays in securing physical silver coins and bars in volume. These lower prices could exacerbate these supply issues as higher prices will be needed to increase supply.

Citi reported that Decline of Photo voltaic Industry Demand  makes COMEX Silver Trade Lower.