London Gold Fixes Lower

It looks like a $378-$380.50 range for gold and both ends will probably hold for now, one dealer said.

Gold was fixed at $378.85 per ounce after $379.50 this morning and $380.30 on Wednesday afternoon.

Dealers said volume was thin both in physical and forwards.

A mildly bearish lead came after New York opened with the December contract trading about $0.80 lower at $381.50 by the gold fixing.

Dealers said the expectation was that if bullion's $380.00 support fell, a steep drop could begin taking gold into areas not plumbed since the early 1990s.

We are looking for it to go back to 80 for the double top and make sure there is nothing else up there. If there is nothing, it could just slip away, one dealer said.

 

Europe's gains Wednesday, which took gold off 18-month lows, brought little follow-through in New York and the Far East.

We saw some short covering and partial profit taking yesterday (Wednesday) but there were no aggressive signs of trying to take it higher, one dealer said.

Silver was friendless and about four cents off unchanged opening levels at $4.88/$4.90 following the gold fixing.

A lot of people are keen to see silver lower. There are a lot of bears around talking about $4.50, a dealer said.

The bearishness in silver has increased since the market failed to make any inroads into its oversold state this week. The 14-day RSI stood at 38.7 yesterday after 39.6 on Wednesday.

Platinum was quiet and weaker at $382.20/$383.30, $2.05 cents off the close and holding barely a $4.00 premium over gold. Palladium was $1.25 easier at $119.25/$120.25.