Gold price starts 2015 under psychologically important $1,200

New York (Jan 2)  The gold price was marginally higher during Friday early morning sessions, but has started 2015 under the psychologically important $1,200 per ounce level. Spot gold was last at $1,185.90/1,186.70 per ounce, a $2.10 increase on Wednesday’s close, when the market finished for New Year holidays. The gold price has come under pressure from a stronger dollar and lower oil price. The greenback was last at $1.2054 as the euro fell to its sofest since June 2010 at $1.2034. The euro lost ground following comments from the European Central Bank (ECB) president Mario Draghi. He was reported as saying the EU borrowing costs will stay low and the risk of not fulfilling its price mandate is higher than six months ago. 2014 saw gold lose 1.5 percent, silver lose 20 percent, platinum lose 12 percent, and palladium gain 11 percent. “With most commentators and major banks agreeing that we are in the final stage/leg/wave of the move lower for gold, it is prudent to conclude that the long term downtrend that started in 2011 should more than likely start to bottom out,” said MKS Capital. Today investors will be watching US PMI numbers, which are scheduled for release this afternoon, which could boost sentiment surrounding the US Fed raising interest rates. Yesterday, China released its manufacturing PMI which at 50.1 was down against the previous 50.3, which has increased investor concerns that growth in this region will be slower and could hinder demand for metals. Non-manufacturing PMI was better than the previous 53.9 at 54.1. There is also PMI numbers scheduled from the EU, which could impact currency movements. Silver at $15.83/15.87 was up on the previous $15.66. Platinum at $1,205/1,210 was $3 higher, while palladium at $791/796 was down $3.

Late Monday morning trading has spot gold up $7 to $1,192, while silver edged up 10 cents to $15.94 on light volume.