Gold and silver had a rare up day yesterday with the US 10 year Treasury yield moving lower by about 10 basis points to 2.40%. The rally for the precious metals was short lived though as all four are in negative territory once again today. The USD has rallied from its lows in Asia in the overnight session which has put pressure once again on gold. In the early NY trading day, data was released showing that US jobless claims unexpectedly fell last week. Jobless claims dropped by 8,000 to 287,000 and the number of people already collecting benefits fell to an eight year low.
Gold has been consolidating above $1,200 and looks decent from a technical perspective above this level and especially above the double bottom of support at $1,180. Physical demand continues to accelerate around the world. Indian imports hit a 16 month high in September of over 650,000 oz. A relaxation in import duties, the lower spot price, and the festive season have been the major contributors for increased demand in the Asian country. Pool metal at major refiners is also getting tighter as the refiners scramble to make kilo gold bars to send to China. Fabricated silver product in North America is becoming further delayed in certain products and the Royal Canadian Mint have even gone on allocation with silver maple leafs. This means that they are now restricting the amount of silver maple leafs each distributor can purchase each week as demand outweighs current supply. Silver has been consolidating around $17 and may be able to move higher should gold have a sustained move up as well.