Gold saw gains today as the USD weakened in a reversal of moves seen yesterday. Market anticipation of the FOMC’s minutes tomorrow confirming that the Fed will taper in the near future had driven yields to two year highs in yesterday’s session but position squaring and bargain hunting seen in this session lifted T-notes and weighed USD. This combined with a generally risk adverse sentiment to result in gains for gold which saw the yellow metal break above its 100DMA to the upside. One month GOFO rates held at steady at -0.1100 but the three month fell to a 2013 low at 0.0883.
Copper traded largely flat in today’s session as gains from USD weakness were contained by generally lackluster investor sentiment after disappointing earnings reports from large mining companies Glencore Xstrata and BHP Billiton and markets expecting the Fed’s QE to be curtailed at next month’s meeting.
Print 17:34, 20 Aug 2013 - Metals News - Source: RANsquawk