Yesterday the 30- and 10-year US bond yields gained +2.54% и +3.52% correspondingly. Investors were risk-averse over Euro but they didn’t mind investing in USD-denominated risky assets. As a result, most US and British stocks, as well as gold and silver, gained in value. European stock indexes showed some weakness, thus decreasing the demand for the common Euro currency.
Later on the day EURUSD lost 0.1% while the US index declined by 0.05%.
Yesterday’s open interest increased by 1.43% for gold futures and made a sharp 10.6% decline for gold options. For silver futures and options it is +0.88% and -7.4% correspondingly.
СМЕ Group’s gold and silver reserves shrunk by 0.003% and 0.0096% correspondingly. ETF reserves shrunk by 60 ounces down to 71,753 million troy ounces. SPDR Gold Trust’s gold reserves increased by 16.645 tons.
Closing price, change in %:
· GOLD 100 OZ FUTR (USD/t oz.) 1725.5 +1.19%
· SILVER FUTURE (USD/t oz.) 33.38 +0.57%
Silver keeps being almost twice as volatile as gold. Yesterday both gold and silver lost their trading volume (below 30-day average). Gold and silver were positively correlated with stocks. Until the next G20 summit in Cannes investors will be focused on the details of the European stabilization plan. The EFSF will be increased up to 1 trillion euro as the lenders will agree to write down 50% of the Greek debt. As a result European banks will need extra funds (106B euro) in order to meet the capital requirements until June 2012. China is expected to contribute to the anti-crisis plan.
US stocks rallied on positive news. Oil futures lost 1.73%.
EURO STOXX 50 Price EUR 2,335.06 -0.38%
FTSE 100 Index 5,553.24 +0.50%
Deutsche Borse AG German Stock Index DAX 6,016.07 -0.51%
DOW JONES INDUS. AVG 11,869.04 +1.39%
S&P 500 INDEX 1,242.00 +1.05%
NASDAQ Composite Index 2,650.67 +0.46%
Today Asian markets have gained 1.13% - 1.53%.
Forecast. According to the Department of Commodity Trading, ,today gold may test $1730/oz and $1733/oz. A break below $1733/oz may start a retracement wave. Silver is expected to try consolidating above the level $34. A break below 33.1 will probably make silver retrace further. The trading volume is average. Volatility spikes are probable. The markets will keep monitoring the situation in Europe.
