Despite the shortened trading week in the US with the Thanksgiving holiday, volume on the electronic exchange remains strong for the precious metals. The US economy grew faster than anticipated in the third quarter with both consumer spending and business investment showing strength. The combined growth of the second and third quarters represents the best six month stretch for the US economy since 2003. US equities are at all time highs, unemployment is below 6%, and home prices continue to rebound. Even with the positive US economic news out today, the euro has managed to reclaim ground against the USD though. The market is very long the USD with CFTC data showing that net bullish speculators have hit a record $48 billion. The USD could be in for a correction as the year comes to a close.
Gold continues to challenge the $1,200 barrier but has yet to close above it. A bullish euro move would allow for gold to press higher from current levels. Should gold close above $1,200, $1,250 would be the near term target. Silver formed a solid base at $16 and has traded higher in four consecutive trading sessions now. Resistance is coming in at the 50 day moving average of $16.90. Happy Thanksgiving!