SMM Morning Review - 2012/3/7 Gold & Silver

SHANGHAI, Mar. 7 (SMM) -- COMEX gold futures for delivery in April opened at USD 1,707/oz and closed at USD 1,672.1/oz on March 6, down USD 31.8/oz or 1.87% from the previous trading day, but USD 3.1/oz higher than London’s USD 1,669/oz in the afternoon. Highest and lowest COMEX prices during the day were USD 1,708.8/oz and USD 1,666.8/oz.

COMEX silver futures for May delivery opened at USD 34.1/oz and closed at USD 32.783/oz on March 6, down USD 0.912/oz or 2.71% from the previous trading day, while USD 0.563/oz higher than London’s USD 33.22/oz during the day. Highest and lowest COMEX prices during the day were USD 34.2/oz and USD 32.5/oz.

Rumors that the Greek debt swap will be postponed to after March 8 led to deeper worries towards a Greek default among investors. Meanwhile, weakness in family spending, exports and manufacturing plus a drop in 4Q economic output of the euro zone trigged worries that the euro zone economy is heading for a recession. Within such circumstance, the euro plunged against the US dollar while the latter surged. Heavy losses in gold and silver were also seen due to sell-off of commodities. SMM expects gold and silver to stay weak in the near term.