Cache Metals Daily Market Reports

It has been a wild past for weeks for spot gold and silver, with yellow metal holding $1539 on the down side and silver touching $26.68. The metals have seen a bounce back this morning.

The precious metals market remains jittery as the situation in Cyprus is coming into its final hours. Spot gold lost $12 to trade to $1604, while silver moved lower to $28.54.

Trouble in the Eurozone has reared its ugly head. Traders were sellers of the euro dollar as flight to gold was on the table as Cyprus is considering a tax on bank deposits to pay for a bailout.

Spot gold has rallied to begin the week amid Eurozone worries. The metal is testing the $1600 level as a break above could trigger buy stops.
The yellow metal hovered near $1599 as comments from a European Central Bank member saw fresh buying enter the market. ECB council member Bundesbank President Jens Weidmann said on Tuesday that eurozone debt crisis was not over and that the central bank would continue policies that promote growth and stability in the single currency bloc "as long as necessary."

The precious metals remained on pause as nonfarm payrolls took center stage with the release this morning. Payrolls increased by a whopping 236,000 jobs created in February and the unemployment rate dropping to 7.7% from 7.9%, dropping gold to $1561 intra-day. This has dented the sediment for the longevity of QE3.

It has been less than a stellar month for precious metals as spot gold has retraced to below $1600 and silver to $below $29.00. Gold's rally has been negated by  longer-term investors, who have sold ETF holdings over the past sessions to free up cash to buy stocks as the Dow Jones Industrial average touches all time highs.

Spot gold continues to struggle to hold onto gains as the metal trades near monthly lows of $1644. Liquidity remains very low while Asian traders are largely absent for lunar New Year holidays.

Spot gold is in a wait and see pattern as a number of key events take place. The G20 meeting in Moscow on Friday, as well as the "Sequestration". One of the main topics at the G20 meetings on Friday is countries trying to devalue their currencies.

"Fiscal and monetary policies must not be directed at devaluing currencies", the Group of Seven nations said on Tuesday

Metals traded sharply lower to begin the week as technical selling in a thinly traded market  due to the Lunar New Year holiday in most of Asia.

with most of Asia out for Chinese New year the spot gold market was easily swayed to the downside. Spot gold drop t its lowest level of 1 month at $1644.

“Some dollar strength and concerns over weak Asian demand during the Chinese Lunar New Year celebrations have lent gold a negative bias,” said Standard Bank

With all eyes fixated on the latest release of the U.S non-farm payrolls(NFP) report, the precious metals complex remained range bound for most of European trading session.

Precious metals continued their slide which began on Monday as investors looked to book profits ahead of the latest Federal Open Market Committee meeting which is schedule for Wednesday.

Spot gold after trying to recapture the $1700 level broke lower as the bulls grew frustrated with the cap on the upside.  The market now awaits the FOMC meeting minutes to be released Wednesday, while there isn't much of a change in the policy stance expected The FOMC may provide additional clues to how long its quantitative easing programme of the $85 billion per month could last.