The Market Gage – FOMC Confirmation Hits Precious Metals

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

The hawkish tone of the FOMC press release along with confirmation that QE was not going to be extended brought about the expected reaction in precious metals on Wednesday afternoon as the market sold off. Despite the FOMC’s pledge to keep interest rates at historically low levels, the selling in our market continued yesterday as the excellent physical demand was no match for long positions that were being liquidated and speculative short positions that were being initiated and increased.

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The Market Gage – Quiet Week Continues for Precious Metals

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

Precious metals continue to trade quietly this week as we await word from the FOMC later today on the fate of QE and look for guidance on the path of interest rates. Perhaps equity traders know something the rest of us do not and today’s statement will be dovish as the most recent rally in U.S. equities continued with a flurry yesterday. Crude oil, which has been in the headlines recently, continues to recover from the dip below $80.00 and is trading at $82.50 this morning. A move back above $85.00 would be supportive for gold as it continues to battle with resistance which is building in the mid-$1,230.00s.

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The Market Gage – Precious Metals Begin Week Quietly

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

Precious metals have begun the week on a quiet note with gold and silver probing lower while platinum and palladium do the opposite, trading above Friday’s settlements. All eyes will be on the FOMC meeting this week which concludes on Wednesday. The subsequent press release is widely expected to confirm the Fed will end QE and will cease the current bond buying program. Any hint of another stimulus program or a delay in curtailing the current program would be a surprise and likely bring a rally to our market. Hawkish comments about interest rates will further support the USD and not be well received by commodity and precious metals traders.

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The Market Gage – Technical Factors Dominate Precious Metals

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

Precious metals are being dominated by technical factors at the moment as geopolitical events and economic data are being discounted by market participants that are happy to “trade the range.” This week’s trading activity is a good example, as gold and silver failed to hold $1,250.00 and $17.50 selling quickly entered the market. Physical demand picked up during the sell-off and silver holding $17.00 appeared to be the catalyst for short term traders to lock in profits.

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The Market Gage – European Headlines to Watch

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

Despite funds continuing to flow back into U.S. equities yesterday and the USD moving higher against the Euro, precious metals probed higher led by gold breaking above $1,250.00. Unfortunately there has been no follow through and all four precious metals are lower in early U.S. trading which follows a very quiet Asian day and European morning.

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The Market Gage – Precious Metals Open on the Defensive

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

Precious metals opened the trading week yesterday via the electronic trading platform on the defensive as the first move was lower. This was followed by physical demand throughout the Asian morning as all four precious metals turned positive where they stayed through the balance of their Monday. Gold took a run at $1,250.00 in London this morning, but so far the resistance band has held and early U.S. trading sees gold looking for direction as it drifts around $1,245.00.

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The Market Gage – Extremely Volatile Week Draws to Close

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

For many the closing bell this week will be a welcome relief as extreme volatility in equities, bonds and energy products have all market participants wondering if we have seen the lows. Growing concerns over the German economy as their bond yields continue to fall and uncertainty over the path Greece may take as one of their political parties again pushes for leaving the Eurozone likely means the rollercoaster ride will continue for global equities next week.

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The Market Gage – Economic Headline Tug of War Continues

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

Precious metals had a rather quiet Monday and Tuesday as the tug of war continues between U.S. equity weakness, lower bond yields, very weak German economic data, a strong USD and the collapse of energy prices led by the fall in crude oil. Gold’s sensitivity to a move in the USD was front and center overnight as all four precious metals moved sharply lower during Asian trading hours as the USD was probing higher, gold and silver traded down to $1,222.00 and $17.02.
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The Market Gage

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

Precious metals began the week yesterday with a move higher on the electronic trading platform, as gold and silver were both bought aggressively. The catalyst for this was dovish comments made by Federal Reserve Vice Chairman Stanley Fischer who addressed an IMF / World Bank Conference. The comment that received the greatest attention was this one, “if foreign growth is weaker than anticipated, the consequences for the U.S. economy could lead the Fed to remove accommodation more slowly than otherwise”. The interpretation is that the Fed policy makers are concerned with the sharp economic downturn in Europe and they are not anxious to see the USD rally further.
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The Market Gage – FOMC Minutes Show Concern Over Economic Growth

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

The dovish tone of the FOMC minutes brought about the expected reactions in all markets this week, driven by the growing concerns of voting members over the strength of the USD and its negative implications for economic growth. Couple this with growing fears of a global economic downturn, led by the woes in Germany, and all of a sudden interest rate hikes in the first half of 2015 no longer look like a guarantee. Besides the continued sell-off in global equities and the extreme volatility in U.S. equities this week, we are also seeing a major sell-off throughout the energy complex and a continued rally in the bond market.

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