A-Mark Bullion Update
After losing ground for a week and a half, the USD is back on the offensive and gold and silver are feeling the pain. Better than expected US economic data yesterday encouraged USD bids and the USD index is now up for the second day in a row. Yesterday, US personal income came in at 0.4% in February m/m versus the 0.3% median forecast from a survey of economists. US home sales also beat estimates and came in at 3.1% in February m/m after an increase of 1.2% in January m/m. Partially fueled by the positive US data, equities screamed higher yesterday which also contributed to the precious metals sell off.
Gold is now trading lower for the third day in a row. After moving higher for seven consecutive sessions, it bounced off resistance at the 50 day moving average. It is now well below previous support at $1,200 and the short term range is defined as $1,170 – $1,200. Silver has followed gold’s trajectory and looks like it wants to test lower. There is minor support at $16 but $15.50 is the bigger level to watch.