The precious metals had an uninspiring trading day, taking some more time to consolidate this week after the last month’s plunge. Gold continues to find resistance and see steady offers around $1,100. This level has now more or less perfectly held for seven consecutive trading days. It is clearly the resistance level to watch while $1,070 is short term and fairly weak technical support. The recent FOMC minutes didn’t appear to do too many favors for gold and silver while … Read More »
China has grabbed everyone’s attention this week with the Shanghai Composite equity index losing 8% on Sunday night. The equity market over there remains on tenuous ground and participants are wondering how long the government can keep the market afloat. It is interesting to note that equity weakness has not caused a safe haven flight to gold in the region. Physical demand out of China remains weak and the Shanghai gold premium arb versus London spot gold is nonexistent. This … Read More »
In thin Asian trading conditions on Sunday night, gold plummeted $50 in a matter of two minutes. Over a million ounces traded on the electronic exchange in that time span with gold falling from $1,130 all the way down to $1,080 as stops were triggered and momentum selling pushed it lower. The five year low at $1,080 lasted for mere seconds as algorithmic traders lifted it immediately to recover to $1,110. While several background stories were going on at the … Read More »
Greek Prime Minister Alexis Tsipras accepted new proposals from creditors including stipulations for a EUR 50 billion sale of Greek assets and acceptance of a high level of domestic economic supervision by bailout monitors. The euro and gold immediately traded lower upon the release of the news. Gold has now traded lower for the third day in a row. Major support for gold seems to appear any time it dips below $1,150 and this is really the key short term … Read More »
After a wild few days of trading, the Federal Open Market Committee minutes yesterday didn’t really provide any additional shocks to rattle the markets. The FOMC expects inflation to rise, unemployment to fall, and the economy’s equilibrium real interest rate to move higher for the next few years. The plan is to still raise the federal funds rate but the overall tone of the meeting had a slightly dovish bias. There is concern among several members that Chinese equity liquidation … Read More »
With fears surrounding the Greek crisis at center stage this morning, the USD staged a rally against the euro as precious metals sank. Silver dropped over $1.00 (7%), platinum fell to a level it hadn’t seen in six years, and gold made fresh four month lows. The markets had a decidedly risk-off sentiment today with global bourses, commodities, and currencies (non-USD) all trading in the red. Despite the Greek debacle and Chinese equities selling off 30% from their recent highs, … Read More »
