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Metal update
26.05.2004 10:59:00,

Euro and Fund buying lift Gold over the $390 strike for today's OTC Option expiry.

Gold: News: Japanese gold imports soared 133.5 percent in April from a year earlier to 6,800 kg after falling the previous month for the first time this year, the Finance Ministry said on Wednesday. Gold imports fell 69.6 percent in March, but had risen more than 200 percent each month between December and February. Signs of strength in the Japanese economy appeared to be keeping demand for industrial use high, analysts said. (Edited Reuters Story)

Gold Bullion Securities (GBS), which offers investors a share of a bar of gold, is looking to widen its appeal by listing on other major European financial markets, the firm said on Tuesday. GBS was initially launched on the Australian Stock Exchange in March 2003 and made its debut on the London Stock Exchange in December. It has accumulated some 52 tonnes of gold of which some 45 tonnes was attributed to the London-listed GBS. Each GBS share represents 1/10 of an ounce of gold. (Reuters)

Trading: Gold opened with a higher Euro at $388.50 and saw commission houses on the bid for June and August Comex Contracts. Reaching the high of the day at $389.70 good two way business kept the market around that level for a while until the Euro gave way. The yellow metal retraced and made a brief low of $387.80. For the remainder of the day gold traded in a rather quiet fashion between $387.70 and $389 and closed around $388.50, which left a bullish sentiment to attack the $390 strike later on. Asia traded in a narrow range as Hong Kong was closed for a local holiday. Access volume was light as well and Gold opened the European session on the Asian highs and overcame the $390 strike rather easy to make a high at $392.20.


View: Far away from the $380 strike and the $400 strike with the most open interest for today's OTC Option expiry, we may trade around the $390 strike, which was our 1-month target. But with the help of currencies and the illiquid markets a move towards 400 is still a possibility. We continue to forecast higher gold prices this year with a three-month target of $415/oz.

Silver: Trading: Having changed the big figure for sure, Silver took a breather yesterday, opening on the lows and got supported by a higher Euro and Gold. It made its way higher on constant bids from the funds. After printing the highs, the white metal retraced slowly to trade as low as $6.04, where interest picked up again and with the Euro rebounding silver enjoyed the ride back up to a decent close on a very quiet day. Asia silver was basically unmoved, which changed right after the European opening when silver got a lift from Gold trading over $390. Posting a high bid at $6.15 silver feels to move towards the 6.25 strike.


View: The $6.50 strike with good open interest looks far away and then again in Silver there is nothing impossible. Apart of today's Expiry actions base metals appear to have steadied over the past couple of days, forming a base as fears of a sharp slowdown in China have eased. Decent buying of copper out of China has seen, helping sentiment towards all base metals. If the rally in base metal prices is sustained, we believe that silver has the possibility to head higher in coming weeks.

Platinum Group Metals: Comment: The PGM complex continues its bid, as solid support was established over the past weeks. Platinum checked out the $840 resistance while palladium is trading above its resistance of $250, which becomes support. Europe traded around $840 and palladium around $250, both metals getting a lift from yesterdays positive economic figures.

Good day

Andy Maag, UBS Precious Metals

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-->Hallo Jükü!

Sind wir
Es wäre wirklich schade.

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-->>Hallo Jükü!
>Sind wir
>Es wäre wirklich schade.
>mfG
>nereus

Gewitter? Herrlichster Sonnenschein hier im Pott.
Ooops, gerade raus geschaut, nix mehr blauer Himmel ;-(