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.
Our markets continue to trade uneventfully with narrower intraday ranges then we have become accustomed to. As we take our clue
from the foreign exchange markets, we are up one day and down the next based on the strength or weakness in the U.S. dollar. This morning finds gold, silver and palladium higher with the USD weaker. The exception is platinum, which is currently down $10.00 at $1,642.00 and has failed to hold its 200-day moving average at $1,646.00. As we have recently witnessed in gold, which failed to hold the 200 day moving average, additional selling could materialize. Platinum does not appear to be suffering that immediate reaction, but it is certainly vulnerable. To add to its short term woes, it is back to trading at a discount to gold.
Today brings Fed Chairman Ben Bernanke and Treasury Secretary Tim Geithner to the “hill” for testimony before Congress. It is unlikely that Geithner will say anything that will move the markets but that can certainly not be said for Bernanke, as his recent statements to Congress accounted for a significant sell off in commodities and treasuries while helping to rally the equities markets. Today he is scheduled to talk about the European debt crisis, but he will no doubt field questions about the U.S. economy and QE3 which could bring fireworks to all markets this afternoon.
As discussed in Monday’s commentary, the key support and resistance levels in gold at $1,635.00 and $1,668.00 are still in play but a break below $1,625.00 or above $1,675.00 are the figures I expect to signal where the next $50.00 plus move will take us.
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.