Gold higher pre-OTC expiry, helped up by silver
Gold higher pre-OTC expiry, helped up by silver
LONDON, Oct 28 (Reuters) - Gold moved higher during early
European trade on Wednesday, helped higher by the weaker dollar
and further strength in silver, dealers said.
London gold fixed higher at $293.75 a troy ounce in the
morning, up on Tuesday afternoon's $293.00, having risen
steadily from mid-way through Asian trade and into Europe.
Hong Kong's Chung Yeung Festival closed its financial
markets on Wednesday, magnifying the significance of gold's
$1.50 move to a peak above $294.00, one London dealer said.
"It looks exaggerated on the charts, silver was the main
cause of the rally," he said.
Silver jumped briefly to two-and-week highs above $5.10
during early European trade after several options traders failed
in their efforts to hold it near $5.00 ahead of Wednesday's
expiry in monthly over-the-counter (OTC) options.
"A couple of people were trying to keep a lid on it but they
failed," said the dealer, who added that the break from $5.00
triggered stop-loss orders which pushed prices higher still.
"There was all sorts of stuff flying around," he said.
Silver was last at $5.07/$5.10 versus its previous New York
close of $4.95/$4.98.
Gold might drop after OTC expiry, another dealer said.
"With the options expiring today... we have a chance of
clearing out a few cobwebs at least, and so we may see something
emerge this afternoon. We're still bearish here overall," he
said. |
