A-Mark Bullion Update
The absence of any major news headlines has the four major precious metals trading in negative territory today. Volume for the April Comex gold contract is a paltry 77,000 lots, the lowest volume day since becoming the active contract month at the end of January. Gold had a poor technical close last week by closing on Friday below its 200 day moving average at $1,251.25. US January payrolls data came in much stronger than expected at 257,000 versus the forecast of 236,000. The December number was revised to an impressive 329,000 as well. The USD surged against a basket of currencies while gold took a plunge. Gold finally managed to find support on Friday at its 100 day moving average at $1,216.30 and this appears to be the level to watch.
Silver’s 50 and 100 day moving average have converged at $16.75 and this level has held perfectly over the past two trading days. Silver’s intraday attempts higher have been sold into though and it looks like it wants to test lower with gold. A break below $16.75 would project down to psychological support at $16.