The political unrest in Ukraine helped boost gold prices on Monday with
June futures closing at 1327.50. Although the uncertainty is favorable
for AU, several analysts are waiting for the demand for the safe haven
asset to fizzle out.
The tightness in the Palladium markets continue amid tensions in
Ukraine and the ongoing strike in South Africa. The precious metal
markets are trading in the red zone across the board this morning. A
stronger U.S. dollar and profit taking is putting pressure
on gold prices in addition to a report by the World Gold Council which
indicated that China’s demand for gold will be limited this year due to
the vast consumption in 2013. Silver prices are being dragged by the
gold and is trading approximately 3.3% on the
downside this morning. We see intensified long liquidation in Palladium
as the metal broke below $800. CPI for March is up .2% vs. expectations
of .1%. Have a great day!
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