Precious metal prices are expected to rally after the long weekend, as market players have temporarily stepped out of the market before the Easter holiday.
"We'll see a stronger rally. Traders will walk into the office on Monday and buy [precious metals] up," Miguel Perez-Santalla, Vice President of Purchasing for APMEX, told RTTNews on Thursday.
The 1 percent climb in gold prices Thursday was the result of thin market and a lack of market participants, in the wake of precious metal prices falling to a 12-week low on Wednesday.
The sharp drop was said to be in response to the minutes released by the U.S. Federal Reserve's Open Market Committee on Tuesday.
A divided Fed debated the outlook for the United States economy but refrained from much talk about a third round of quantitative easing, according to the minutes of the central bank's most recent policy making meeting.
"The drop was way over done. Ahead of job numbers coming out Friday, people don't want to take risks. Guys who are short, don't want to go into the long weekend short," Perez-Santalla told RTTNews.
Gold for June delivery climbed $16, or 1 percent, to end at $1,630.10 an ounce on the Comex division of the New York Mercantile Exchange. The gains were not enough to erase weekly losses of 2.5 percent for gold and 2.3 percent for silver. Commodity markets will be closed Friday in observance of Good Friday.
Meanwhile, June palladium added $12.05, or 1.9 percent, to $644.80 an ounce. Palladium declined 1.4 percent on the week. July platinum gained $9, or 0.6 percent, to $1,607.60 an ounce. On the week, platinum lost 2.2 percent.
"One of the biggest problems with palladium is that it's a lagger, and so is silver. Palladium is the weaker of the two, however palladium has more participants. Less people trade them because they are more volatile," Perez-Santalla told RTTNews.
Furthermore, precious metal gains were on the back of a rising dollar and lower U.S. equities.
The U.S. dollar was on the climb to a three-week high against the euro and other major currencies Thursday as turmoil in Spanish bond markets stirred up fading worries about the region's debt crisis. The euro also broke through a trading floor set by the Swiss National Bank last September.
by RTT Staff Writer
For comments and feedback: email@example.com