A sense of calm returned to the precious metals complex on Thursday amid the growing realisation it will take years for the United Kingdom to figure out exactly how to extricate itself from the European Union.
Gold for August delivery on the Comex division of the New York Mercantile Exchange was last down $7.30 at $1,319.60 per ounce. Trade has ranged from $1,315.30 to $1,323.10.
“Gold is doing very little in the scale of things and seems stuck in a $1,300-1,330 range at the moment,” Marex Spectron’s David Govett said.
“Overall, the Brexit confusion continues, but with an absence of any conclusive news may start to recede into the background for a while, which may prove slightly negative to gold,” he added.
Gold has weakened modestly over the last couple days – a broader ‘risk-on’ tone has emerged, equity markets have bounced back and the dollar has stepped back slightly.
In wider markets, the pound was 0.1 percent stronger against the dollar, while the Nikkei and Hang Seng closed up 0.06 percent and 1.75 percent respectively.
“It looks like perhaps the immediate impact of Brexit is already behind us as the world realises nothing is going to change quickly – except sentiment,” said Sharps Pixley’s Lawrie Williams, who noted that the UK has not invoked Article 50, which would start the timetable for a withdrawal from the EU.
“Overall the markets are reacting pretty well to the Brexit vote as the initial dust settles. Indeed it could prove to be something of a non-event, except perhaps for the pound,” he added.
On the data side so far, Japanese May preliminary industrial production disappointed, falling 2.3 percent, while German retail sales for the same month were better than expected, rising 0.9 percent.
Among other European releases, French consumer spending declined 0.7 percent in May, more than the forecast 0.1-percent fall. This afternoon, key US figures include weekly jobless claims and the Chicago PMI.
As for the other precious metals, Comex silver for September delivery was up 3.8 cents at $18.445 per ounce. On Wednesday, the metal was the superstar in the complex, climbing 51.4 cents, while gold posted a small loss.
“It’s always hard to quantify why silver moves by itself but, suffice it to say, when it does, it moves,” said Marex Spectron’s Govett, who noted that silver performed a golden cross, wherein the 100-day moving average rose above the 500-day moving average for the first time since 2009.
“There is not always a logical reason behind it, which is quite often shown when it retraces its entire move the next day, but in this case I think we may have a little left in the tank,” he added.
Platinum for October delivery on the Nymex was down $7.60 at $1,005.90 per ounce while the most active palladium contract was at $586.05, down $4.50.
(Additional reporting by Martin Hayes, editing by Mark Shaw)
The post Gold slips as Brexit dust settles; silver keeps moving higher appeared first on The Bullion Desk.
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Source: Bullion Desk News
