Dillon Gage is proud to offer the following insights into the precious metals market from Roy Friedman. Roy has over 3o years of in-depth experience in all facets of precious metals. We will offer Roy’s comments several times each week.
Less than stellar economic news proved to be good news for the gold market in the morning in the U.S. on Friday. After beginning the day with a $20.00 drop in reaction to India’s announcement that the government was doubling the import tax on gold, the markets spent the U.S. trading day in quiet but steady rally mode. Weaker than expected Industrial Production figures and a drop in Consumer Confidence on the back of soaring gasoline prices prompted the U.S. Dollar to selloff. Metals prices closed the day nearly unchanged as bargain hunting and short covering all but erased the morning’s European losses.
This morning finds all four metals trading quietly near Friday’s close. In a weekend devoid of any market moving news, the most interesting story to report came from Saturday’s, Financial Times in which cited an anonymous source speculated that the Central Banks having been buying gold on the recent dips in prices. With very little global economic news scheduled for release until later in the week, we continue to focus on the technical picture for gold, which still appears to be bearish. A move above $1,668.00 could spark a rally as it breaks the technical downtrend, while a failure to hold the recent low around $1,635.00 will likely bring renewed selling.
Roy Friedman has a degree in economics and political science from the State University of New York at Binghamton. For more than 30 years, he has worked at all levels of he industry including as a trader for major Metals firms and international banks. For more information on Mr. Friedman, please click here.