Dynamics

On Monday 10 August, at the tender quotes for precious metals have continued to demonstrate a descending trend, due to the strengthening of the dollar in the currency market FOREX, but also due to technical factors.

As a result of trades on the COMEX, division New York commodity exchange (NYMEX) quotes on gold fell by 12.60 to 946.90 dollars per troy ounce, the price of silver fell 31 cents to 14.35 dollars per ounce.

Causes

On Monday 10 August, bids for the precious metals market showed negative trends. The background for this was the continued strengthening of the dollar after better-than-expected data on the number of jobs outside of agriculture United States in July, as well as unemployment. In doing so, the price of shares on stock sites also developed and included in the red zone. From a technical perspective, gold sales have increased following the strong support of Perforation at 950.00 dollars for troy ounce. From the news it may be noted that in the second quarter of this year, Silver Standard Resources Inc began its planned expansion project Pirkitas (Argentina), by processing the historically accumulated tailings. In late July the first shipment of concentrate to 100 tons. The focus of the current quarter, the company will give the process of crushing and processing of tin and an increase in extraction of silver in concentrate. Given the forced delay in the initial stage, the volume of production in 2009 at Pirkitas are expected to amount to about 3 million ounces (93 tonnes) of silver. After reaching full capacity in 2010, production is estimated at approximately 10 million ounces (311 tonnes) of silver.

What to expect?

On Monday, gold futures quotes kept above support 940 dollars per troy ounce, that from a technical point of view can be a point of reporting a new bottom-up trend. Also in favor of the growth of precious metals were rumors that the market can correct American stock index S P500 in September, which could raise the profile of the protective function of the yellow metal.

What is fear?

One of the main factors that can adversely affect the market for precious metals remains the strengthening of the dollar in the currency market FOREX. The overall technical picture is also said not to favor the growth of precious metals.

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