Commerzbank: GDP, Dollar/Yen Gains, Technical Selling Pressure Gold
London (Oct 31) A number of factors have left gold and silver under pressure, says Commerzbank. “The surprisingly robust U.S. GDP (gross domestic product) figures yesterday confirmed the Fed’s more optimistic economic outlook of the day before and thus indirectly dampened demand for gold as a safe haven,” Commerzbank says.
An advance report shows the U.S. economy grew 3.5% in the third quarter. “In conjunction with the massive increase in bond purchases by the Japanese central bank, this caused the U.S. dollar to further appreciate, thereby putting pressure on gold. Then there are the technical factors -- gold has fallen not only below the psychologically important $1,200 per troy ounce mark, but also below its four-year low of around $1,180.
This could trigger further technical selling via the futures market,” As of 7:46 a.m. EDT, Comex December gold was down $25.70 to $1,172.90 an ounce and hit a low of $1,166.20. December silver lost 31 cents to $16.11 and bottomed at $15.955. Based on a futures continuation chart, these were the lowest levels in four years.