Silver was the pacesetter in the precious metals complex on Thursday – the grey metal smashed through technical resistance, while gold had a fairly quiet day.
Gold for August delivery on the Comex division of the New York Mercantile Exchange closed down $6.30 at $1,320 per ounce. Trade ranged from $1,315.30 to $1,323.80.
“With the long weekend beginning in North America, expect some squaring [on Friday],” said Kitco’s Peter Hug, who noted that $1,310 remains well bid, with overhead resistance at $1,325.”
“I would suspect that next week will usher in further volatility in global equity markets, with the bias towards lower prices and likely setting gold up for the next push higher,” he added.
But the big mover again today was silver. The metal settled up 21.6 cents, or 1.17 percent, at $18.623 per ounce, which marks a 22-month high.
“It’s always hard to quantify why silver moves by itself but, suffice it to say, when it does, it moves,” said Marex Spectron’s Govett, who noted that silver performed a golden cross, wherein the 100-day moving average rose above the 500-day moving average for the first time since 2009.
“There is not always a logical reason behind it, which is quite often shown when it retraces its entire move the next day, but in this case I think we may have a little left in the tank,” he added.
Meanwhile, in central bank news, Bank of England governor Mark Carney said that the bank could lower interest rates to stabilise the economy following the Brexit referendum in the UK.
“It now seems plausible that uncertainty could remain elevated for some time,” Carney said. “The economic outlook has deteriorated and some monetary policy easing will likely be needed over the summer.”
The pound dropped by more than one percent after the press conference – it was last at 1.3242 against the dollar and 1.20 against the euro.
In the wider-markets, the Dow Jones industrial average and S&P 500 were up 1.22 percent and 1.20 percent respectively, while light sweet crude (WTI) oil futures on the Nymex were down $1.50, or 3.01 percent, at $48.39 per barrel.
As for the other precious metals, platinum for October delivery on the Nymex ended up $10.80 at $1,024.30 per ounce and the most-actively traded palladium contract finished at $598.40 per ounce, off $7.85.
On the data side, US weekly jobless claims were much as expected at 268,000, while the Chicago PMI for June was 56.8, well above a forecast 50.6.
Earlier, May German retail sales were better than expected, rising 0.9 percent. Among other European releases, French consumer spending declined 0.7 percent in May, more than the forecast 0.1-percent fall.