Yesterday’s US session and today’s early Asian session see the Gold and Silver pare back on losses incurred in yesterday’s early sessions, in which the commodities dropped by over $25 and $3 respectively. The huge drop was reversed in latter sessions as the drop in the US Dollar triggered an instant reversal of the two commodities, following uncertainty in the US Federal Reserve with regards to the continuation of the monetary policy as well as worries of global demand for the commodities.
Gold began its steep descent, a little prior to the wake of the European session, depreciating from a level of around $1504 to a 1 week low of $1477.7 in mid European session following a margin requirements raise by the Shanghai Gold Exchange. Gold is opened up this week’s Asian session around $1506 per ounce and has so far dropped to dollars as it currently trades around $1504.
Silver followed in high correlation to Gold and also dropped around the same time, from a steady level of 35.43 to a low of 32.28 by mid Asian session. The Asian session thus far see’s Silver trading around 34.88, somewhat elevated from the session open of 34.11.