After looking at the technical charts for gold and silver, it is apparent currencies are trading virtually independent of what precious metal prices are doing. Last week, gold saw a rally after the jobs report while currencies fell "like a rock" after the report was released.
The gold price declined a few dollars during early morning trading in the Far East...and then bounced along the $1,550 price mark until shortly after the London open.
From there it rallied back to unchanged going into the 8:30 a.m. jobs numbers in New York. The subsequent rally got hammered instantly...and the gold price didn't do much until around half-past lunchtime EDT. The it rallied slowly from there, closing on its high tick of the day...something you only see happen a small handful of times a year.
Gold finished the week at $1,582.30 spot...up $28.70 from Thursday's close. Gross volume was an immense 215,000 contracts...so this rally did not go unopposed by JPMorgan et al.
The silver price action was slightly different. It declined in price [in fits and starts] right from the open in the Far East on their Friday morning. The low price tick [around 26.75] came at the London open and, with the exception of the usual shenanigans at the release of the jobs numbers, silver rallied for the rest of the day, closing virtually on its high.
Silver finished the Friday session at $27.35 spot, up 45 cents on the day...and net volume was around 33,500 contracts.
The dollar index opened in Japan on Friday morning at 82.72. It rallied as high as 82.87 up until 9:00 a.m. in London...and then down it went. The index fell like rock at the release of the jobs numbers, but someone with deep pockets was there to catch a falling knife. The index continued to decline until shortly before 11:00 a.m. in New York...and then rallied a bit going into the 5:15 p.m. close. The dollar finished the Friday session at 82.49...down 23 basis points from Thursday's close.
It should be apparent by now that, for the most part, the currencies are trading virtually independently of what the precious metal prices are doing.
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