The precious yellow metal fell last week while the dollar surged and equities maintained its gains following minutes of the U.S. Federal Reserve’s most recent policy meeting revealed the central bank which began to set the groundwork for a possible retreat from stimulus but no final decisions were at all taken seriously.

Palladium likewise was able to rise to a 3-year term and platinum surged near a two=month high as labour strikes were rampant in top producer South Africa which dragged on for almost five months.

The minutes of the session which was released last week mentioned that Fed staff presented several suggestions to raising short-term interest rates, yet the discussion was simply regarded as discreet planning and not a sign rate hikes were expected to come anytime soon.

Inflation expectations were eased as several officials were arguing that there was the possibility of extensions in the labour market than an indication by the nation’s 6.3 % unemployment rate coupled with wage gains cited as the primary supporting evidence.

The redundancy is indeed regarded as bearish and in the long run, the downside range is purely limited since there are some existing causal factors out there such as the ongoing political turmoil in the Ukraine.

Spot gold declined 0.2 % at $1,290.84 an ounce by midweek last week. U.S. COMEX gold futures for June delivery was able to settle down $6.50 at $1,288.10 per ounce with trading volume in the line with its thirty-day average according to the preliminary data by Reuters.

According to various assessing investors of interest, holdings of the SPDR Gold Trust, the top performing gold-backed exchange-traded fund plummeted by 1.79 tons last week.

However, on the physical side, India’s central bank officials and finance ministry are urging government to relax strict gold important policies to head off a rise in illegal purchases in the world’s second largest consumer of the said precious metal. On the other hand, spot silver edged up 0.1 % to 19.38 per ounce correspondingly.

Surged of Palladium and Platinum

Platinum and Palladium group of metals soared as both metals and its markets were expected to post hefty deficits this year. Moreover, South Africa is presently facing its exorbitant and longest platinum miner’s strike and is further expected to drag on with supply being less than a quarter of a million fewer ounces of metal in 2014 than it did last week. Furthermore much can be said knowing that platinum is mainly utilised for creating emissions-capping catalytic converters in cars and similar vehicles.

Finally, platinum increased 0.6 % to  %1,470 an ounce, which was not at all distant from a two month high of &1,483.50 hit last week whereas palladium was up 0.4 % at $827 an ounce having hits its peak level in more than four years at $832.70 in an earlier trade.

Last Updated: May 27th, 2014