Amark Bullion Update
Gold is trading lethargically around yesterday’s closing price with traders on the sidelines ahead of tomorrow’s US non-farm payrolls figures. Volume on the electronic exchange was unimpressive with only 105,000 lots trading today. In the European session, the European Central Bank said that it will no longer accept Greek bonds in return for funding. This essentially means that the ECB will allow Greek banks to fail if the government does not fulfill its obligations outlined in the previous rescue package. The euro was hit lower on this news but later recovered after the release of positive German data. Gold, trading without its own conviction, followed the euros path lower and then recovered with it as well. The yellow metal has put in a triple bottom at $1,255 over the last three trading days and is very much range bound. The upper end of this range is coming in at $1,285 and US non-farm payrolls figures tomorrow may very well be the catalyst to break it out of this area. Silver dipped below $17 today but recovered along with the euro and gold to finish its session at $17.20. Like gold, it remains range bound but should have strong bids materialize ahead of the convergence of its 50 and 100 day moving average at $16.70 and $16.76, respectively.