Precious metals dropped more than 1 percent on Wednesday as investors took profits from a run-up spurred by geopolitical concerns Gold prices moved down more than 1.5% for the day as tensions between Russia and Ukraine eased. Russian President Vladimir Putin called on pro-Moscow separatists in Ukraine to postpone a vote on secession just five days before it was to be held, Chinese buying has been subdued as a weaker currency has discouraged importing banks from purchasing big quantities. China’s demand for gold bars fell nearly 44 percent in the first quarter of 2014 from a year ago, while total gold consumption edged up about 0.8 percent, the China Gold Association said on Wednesday.
Gold price are expected to remain down for the day as it broke the major support yesterday, could trade in the range of 3110 to 1275.
Silver initially tried to rally during the session on Wednesday, but broke down below the $19.50 level in order to show significant weakness. There still a significant amount of support below thought, Fed will ends its asset purchases led to stronger dollar and weak commodities exerted downside pressure.
Silver prices are expected to trade weaker taking cues from weak international markets in a range of 19.50 to 20.80
Crude gaped higher at the open on Wednesday, and continued all the way to the $101 level. We did pull back slightly, but at the end of the day we are above the top of the shooting stars from the previous couple of sessions. Any pullback at this point in time should offer buying opportunities,
Crude oil prices could trade sideways on escalation of violence in Libya and unexpected drop in crude inventories & can trade from 100.50 to 99
TODAY’S DAY RANGE
Today Eurozone interest rate decision and ECB press conference, UK Asset Purchase facility and Official bank rate, US unemployment claims and speech by Janet Yellen
Russia pulls back its troops from the border of Ukraine, easing the tensions between both the nations.
German factory orders moved to -2.8% vs 0.9% prev (rev 0.6%)
Fed Chair Janet Yellen said the economy was still in need of lots of support given the “considerable slack” in the labour market.