YEREVAN, January 8. /ARKA/. Gold prices downed on the first day of the trading week losing all positions acquired early this year due to partial agreements on easing “budget breakdown” in the U.S.
Gold and silver quotes got pressured as the U.S. Federal Reserve published its December meeting protocols last Thursday. The protocols hinted on earlier than expected terms for termination of the quantitative stimulus program.
The active deals are still curbed amid absence of important economic news. The market dealers are also getting ready for the further talks on reducing expenses and the U.S. debt limit. As a result, on Monday, gold prices dropped 0.39% from Friday to 1,649.87 USD per troy ounce, and silver quotes rose by 0.14% to 30.224 USD per troy ounce.
On Tuesday, during the Asian trading week, the precious metals were traded at lower prices. We expect there are still some risks for further fall, moreover, the new wave of volatility at the market will disappoint the dealers even more. We believe the gold and silver quotes may rise if they hit through the resistance benchmark of 1,668.29 and 30.50 USD per troy ounce respectively.
The dynamics of these assets will depend on the dynamics of the American currency. If it continues tumbling, the metal quotes may increase. However, the quotes are unlikely to rise prior to the European regulator meeting, the results of which will be announced on Thursday. Furthermore, the dealers will be closely monitoring the speeches by the four presidents of the regional U.S. Federal Reserves over the terms of the quantitative stimulus.
The anticipated fluctuation range of the gold prices on Tuesday may be 1,635.0 – 1,659.0 USD per troy ounce, and of the silver prices—29.58 – 30.50 USD per troy ounce.-0-
Mikael Verdyan, an analyst at FOREX CLUB, specially for ARKA news agency.
The opinion of the author does not necessarily reflect that of the agency.