Metal markets: gold's under pressure on Obama’s decision to limit financial risk

Friday morning, bullion retained its losing positions, staying under pressure as US President Barack Obama's unveiled its plans to limit financial risk taking raised concerns about diminishing capital flows from banks, which have provided liquidity for gold and commodities investors.

Spot gold was little changed from New York's notional close of $1,094.20, touching $1,094.80 per ounce as of 2:55 GMT, but it’s above a 3-week low of $1,088.30 hit on Thursday. Currently levels, spot gold would have fallen about 3% on the week, the largest weekly drop in 6 weeks.

Gold prices fell to their lowest level this year on Thursday when Obama's plans dampened investor sentiment across the board.

The dollar lost ground against a basket of major currencies Friday, after falling sharply on Obama's plan the day before.


US gold futures for February delivery GCG0 fell by 0.8% to $1,094.80 per ounce, compared to $1,103.20 on the COMEX division of the NYMEX. Futures also
fell to a 3-week low on Thursday.

Reflecting investor caution, inflows into the SPDR Gold Trust halted, with its holdings staying unchanged at 1,111.922 tonnes as of January, 21 from the previous business day.

Turning to other precious metals, it’s important to notice palladium slides from a 19-month high of $471.75 per ounce hit Thursday, while spot platinum also moved away from a 17-month high hit Wednesday.

Around 3:01GMT the precious metals was quoted as much as:

Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1095.85 1.65 +0.15 0.01
Spot Silver 17.40 0.05 +0.29 3.39
Spot Platinum 1580.50 -12.50 -0.78 7.74
Spot Palladium 443.75 -5.25 -1.17 9.43
TOCOM Gold 3180.00 -113.00 -3.43 -2.42 72749
TOCOM Platinum 4574.00 -200.00 -4.19 4.41 22101
TOCOM Silver 50.80 -2.80 -5.22 -1.74 618
TOCOM Palladium 1280.00 -103.00 -7.45 9.87 601

TOCOM prices in yen per gram, except TOCOM silver which is priced in yen per 10 grams. Spot prices are in $ per ounce.