Futures : Metals Update

Precious Metals had a relatively quiet session yesterday after trading -$2.21 in February Gold at the Comex Open. Support came from OPEC’s announcement that the production cut will be implemented immediately.

We note that a short-term bottom has been made in the past few days above 600 for Gold and 12.10 for Silver, however both metals did not manage to break strong resistances at 617/20 for Gold 12.60 for Silver.

We keep our bias skewed to the downside short term as we expect the OPEC announcement to have a very short term effect.

We could see some sideway trading before the US Retail Sales on Friday as the EURUSD slide was stopped close to the 1.29 level, on the negative hand lower Oil price could pressure the metals.