Gold achieved $882.75 per ounce in NY trading yesterday but failed to keep above the $880 resistance level. Silver touched $16.89 overnight down 11 cents from yesterday’s high of $17.00. The London AM Gold Fix at 1030 GMT this morning was at $878.00, £446.38 and €565.25 (from $863.50, £434.64 €556.74 last Friday).
The range at the moment is between $850 and $880 with a firm break above this leading to higher prices. This trend is supported by the upcoming Indian festival of Akshava Tritiva on the 8th May. It is estimated that as much as 5% of India’s total annual demand (750 tonnes per annum) can be sold during this festival.
Gold seems well supported above previous resistance at the record nominal highs of $850 with physical demand playing an important role in keeping this level.
Today’s Data and Influences
On the economic data front, the schedule is very light today with pending home sales the only contender. The report is expected to highlight the continuing problems in the housing sector and likely to contain downside risks to the dollar.
Silver is trading at $16.73 per ounce (1200 GMT).
Platinum is trading at $1945 per ounce (1200 GMT).
Palladium is trading at $427 per ounce (1200 GMT).