Gold bears gain upper hand on easing Syria tensions, Fed tapering
While gold and platinum seemed to ignore the prospect of further government involvement in the Zimbabwe mining sector, it also seems as if the South African mining sector has remained calm in the wake of wage settlement news.
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Market remains uncertain as analysts are figuring out who is having an upper hand, the bears or the bulls although gold appears weak and has fallen to the lowest level in three weeks. With possibility of military stirke on Syria waning and expectations of US Fed tapering of bond buying, US Gold futures have eased to $1356.8 per ounce on Thursday trading.
Most analysts now predict a weaker gold price for 2014 as safe haven appeal has eroded and recovery signs in US and other markets pushes up dollar and equities.
Meanwhile, a CME Group report said: The bear camp will trumpet the fact that December gold initially managed another lower low on the charts. However, the bull camp will suggest that the market didn't show much interest in extending the downside breakout on the charts and the bear camp might also point out that the decline in gold prices over the last two weeks was forged on falling volume and declining open interest and that in turn isn't a ringing endorsement of the bear case.
While gold and platinum seemed to ignore the prospect of further government involvement in the Zimbabwe mining sector, it also seems as if the South African mining sector has remained calm in the wake of wage settlement news. At times today gold was weaker relative to the rest of the metals complex and at times today it seemed as if gold was being pressured by lingering tapering fears. Some outside markets today acted like the prospect of US tapering next week was declining but the gold trade didn't seem to be overly interested in that line of thinking. Reuters update: -Diplomatic efforts toward placing Syria's chemical weapons under international control intensified on Wednesday and U.N. investigators concluded Syrian government forces were almost certainly responsible for two May massacres that killed up to 450 civilians in the bloody civil war.
-Gold demand in India, the world's top consumer of the precious metal, improved on Wednesday as prices fell to their lowest in three weeks following losses in the world market and on a strong rupee.