Daily outlook for gold prices

Quotes from Commerzbank Corporates & Markets:

-The gold price is battling with the psychologically important $1,200 per troy ounce mark. Yesterday saw it dip below this threshold for a time to hit a seven-week low of $1,190. In euro terms, gold was trading at a good €1,050 per troy ounce, its lowest level in 5½ weeks. Gold is still hovering around the $1,200 mark this morning, and as such is faring relatively well in view of the firm US dollar.

-Among other things, it is finding support from ETF inflows: holdings in the gold ETFs tracked by Bloomberg were increased yesterday for the second day in a row by 4 tons. Silver ETFs also registered significant inflows: the 123 tons that were reported represented the strongest daily inflow since early October, which no doubt also prevented any more pronounced slide of the silver price. It fell yesterday to $16.1 per troy ounce to reach a seven-week low, just like gold.

-Fed Chair Yellen will be giving her semi-annual testimony before the US Senate banking committee this afternoon. This could spark increased volatility on the gold market if she were to give any hint of when the Fed plans to raise interest rates. According to IMF data, central banks exercised restraint in terms of gold purchases in January.

-Turkey sold gold for the second consecutive month (14.2 tons). It is also worth mentioning that the gold held by central banks in the Eurozone increased by 7.4 tons, probably mainly as a result of Lithuania adopting the euro.