There Is No Support For Gold, Silver & Copper

Gold is flat this morning as traders continue to focus on the FOMC statement and comments from new Fed Chief Janet Yellen. Ms. Yellens comments have been the focus of the markets since Wednesday. There is little data due to effect metals trading today. Gold is trading at 1331.50 while silver continues to ease touching 20.337 down by 93 points. Platinum on the other hand gained $6.05 to trade at 1438.95. Gold hovered near three-week lows on Thursday as the US dollar jumped on expectations the Federal Reserve could end its bond-buying programme this fall, hurting the metal’s safe haven appeal as a hedge against inflation. Although concerns about the Ukraine crisis could lend support, the bullion market was suffering from a lack of physical buying from top gold consumer China following a sharp drop in its currency. Janet Yellen, speaking at her first news conference as the Fed chief after the close of the US central bank’s two-day policy meeting, said the central bank could start to raise interest rates around six months after its current asset purchase program ends.

Gold advanced on speculation that the largest weekly loss since November would spur physical demand even after the Federal Reserve said interest rates may increase and as Goldman Sachs Group Inc. predicts declines. Gold held in exchange-traded products rose for a second day on March 19, increasing 1.5 metric tons to 1,764 tons, data compiled by Bloomberg show. Assets in the SPDR Gold Trust, the biggest gold-backed ETP, were unchanged at 812.78 metric tons yesterday, according to data on the fund’s website. There are signs gold is supported at about $1,320 level, but the market is looking for direction. Although it has rebounded quickly, there’s simply no impetus to go beyond $1,335. It’s basically consolidating between $1,325 and $1,335.

Markets await comments from a quartet of Fed speakers later on Friday. St. Louis Fed President James Bullard, Dallas Fed President Richard Fisher, Minneapolis Fed President Narayana Kocherlakota and Fed Governor Jeremy Stein are all due to talk.

Copper is trading at 2.927 unable to halts its decline as traders continue to worry about China’s economy. Copper is poised for a fourth weekly decline after the Federal Reserve signaled it would raise interest rates, hurting the demand outlook for the metal. Oversupply, a weakening economy in China and prospects that the Fed would raise interest rates all kept downward pressure on prices. Copper slid on Thursday, giving up the previous day´s gains, as investors worried about the prospect of U.S. interest rates increasing earlier than expected and about a credit squeeze in top consumer China. A stronger dollar also pressured base metals, making the dollar-priced commodities more expensive to buyers outside the United States. The US dollar continued to climb on Friday morning to touch 80.33. Analysts said speculation that demand for metals will fall as the US Federal Reserve signaled a faster timetable for raising rates and China’s growth faltered, putting pressure on copper prices at futures trade here.