Market Leader informed
The market of precious metals keeps seeing corrections. Besides,the market is being pressed by the speculative bearish positions and the market sentiments concerning China’s interest rate decision (it is expected to be raised).
Gold has sharply declined. That is how it reacted to the US Initial Jobless Claims report at 10.30GMT (420K for the last week against 421K expected).The price broke through the support level at $1372 per ounce. Now it‘s being traded around $1366.
Global sentiments: according to some analysts, India as the biggest importer of gold, may sharply reduce the import in 2011 (up to 50%). It conditioned by the fact that the rural population, which consumes over 70% of the imported gold, cannot afford buying gold at very high prices. Besides, the Indian market of gold looks overbought (according to unofficial data, this year’s volume of gold imported by India may reach 800 tons).
Gold-mining news: Angel Mining (LON:ANGM) Company has started gold mining at Nalunaq (Greenland). After the announcement the company’s stock gained 9,5%. The head of Angel Mining says the company plans to produce 65 ounces of gold a day while the annual production volume is believed to reach 25000 ounces. The cost price of producing 1 ounce is expected to be $560 at the 1st quarter of 2011.
At the market of silver the price looks vulnerable (even though it hasn’t reached the critical level of $29 per ounce) despite the fact that the bullish sentiments are still dominating because of the expected industrial demand for silver and its investment attractiveness.
In general, the silver prices are currently consolidating around $29 per ounce.
The market of platinum has recently gained support, connected with the news that Indian jewelers have increased the sales of platinum jewelry. Moreover, according to the news release, there is a considerable increase in the demand for platinum jewelry, which may see further growth in 2011. However the share of the jewelry demand in platinum price-setting is considerably less remarkable than the one of the industrial demand, so this factor cannot maintain a steady bullish tendency.
The analytics is provided by the Department of Market Sentiment Analysis, Masterforex-V Academy.
Source: Market Leader
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