Analysis of the metals market (GOLD) on 06.03.2008

Analysis of the metals market (GOLD) on 06.03.2008

Gold is preparing for the storming of $ 1000 level per ounce

On Wednesday courses lost precious metals returned eve against the backdrop of renewed growth in oil prices and falling dollar. Gold reached a new spot to the maximum at around $ 992.40 per ounce. Prices of silver rose to a maximum of $ 20810, the maximum level for 27 years.

At the American bid prices for precious metals rose sharply after weak data on regular United States. The main reason for the sharp fall of the dollar became ADP data on the jobs created in the private sector in February, which showed job cuts to 23000 against the forecast of economists, who had thought an increase of 10000.

In advance of the official labour market data in the United States, which will be presented on Friday, ADP data show further deterioration in the labour market. The reduction of jobs affects the unemployment rate, which in turn lowers consumption, which affects the growth of the economy. At the moment, everything points to the approaching recession in the United States.

Also not very reassuring have data on activity in the service sector, which is predominant in economic growth. An ISM index rose to 49.3 in February against 44.6 in January. Despite the increase in the index, its value is below 50.0, indicating a slowdown in the sector.

The increase in oil prices also supported precious metals market data on the background of the Ministry of Energy of the United States on the reduction of oil and petroleum products. The price of light sweet oil brand mark rose above $ 104.50 per barrel.

Assumptions that the fall in the price of gold on Tuesday confirmed unwarranted.

Today, the main events will be the decisions of the European Central Bank and Bank of England on interest rates. Also, the United States will be represented on the index of business activity in the manufacturing sector for February.

Ascending dynamics of the market today, precious metals may continue if the Central Bank will leave rates unchanged, but data for the United States to continue to show weakness ..

By 03.00 Moscow time spot price of gold was $ 986.70 per ounce, against $ 964.70 at the beginning of trades in Europe. Spot price of silver was $ 20730 per ounce, against $ 19560 at the beginning of trades in Europe.

The morning auction courses precious metals traded in narrow ranges. Spot price of gold to $ 8.00 Moscow time stood at 985.00. Silver torgovalos at $ 20720 per ounce.

To date, the average trading range for gold is between levels 983.00 - 993.00.

Technically, the price of gold continued to rise after a day of correction against the backdrop of falling dollar.

Indicator purchases in the zone, trade will be held today, depending on the published data, ascending trend prevails.

To date, the average trading range of between levels of silver is 20,470 - 20,820.

Technically, the growth rate of silver continued after a day of correction against the backdrop of falling dollar.

Indicator purchases in the zone, trade will be held today, depending on the published data, ascending trend prevails.