SMM Morning Review - 2012/5/11 Gold & Silver

SHANGHAI, May 15 (SMM) -- COMEX gold futures for delivery in June opened at USD 1,584.4/oz and closed at USD 1,561/oz on May 14, down USD 23/oz or 1.45% from the previous trading day, but USD 2.5/oz higher than London’s USD 1,558.5/oz in the afternoon. Highest and lowest COMEX prices during the day were USD 1,585.2/oz and USD 1,556/oz.

COMEX silver futures for July delivery opened at USD 28.9/oz and closed at USD 28.4/oz, down USD 0.49/oz or 1.7% from the previous trading day, but USD 0.07/oz higher than London’s USD 28.33/oz for the day. Highest and lowest COMEX prices during the day were USD 29/oz and USD 28.1/oz.

Greek was still a key market mover on Monday. Investors’ worries mounted as Greek attempts to rebuild a cabinet failed one by one and news flew out that Greece may finally exit the euro zone. Euro zone leaders pressured Greece during the day to step up efforts for a new government. A second vote is to be held in June in Greece. Eurostat data show euro zone industrial output dropped unexpected by 0.3% MoM in March, in contrast with the expected 0.4% gain, indicating the region is facing a not “moderate” recession. Due to above development, investors moved to the safer dollar, with gold weakening for a second day. SMM expect gold and silver to shed more losses during today’s trading.