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.
Continuing Friday’s down day and weak close, the European markets opened this week’s trading with a sharp move lower. Yesterday, the USD rallied to 8-week highs in Europe and briefly broke below 1.30 Euro which, along with growing concern over the health of the Chinese economy, weighed on metals prices. Earlier Monday, with most commodities and equities markets trading lower the U.S., the Commerce Department released March’s retail sales data which showed a surprising gain of .80 percent which was above consensus expectations. Equity futures rallied sharply on the data taking the metals with it. This left silver and palladium trading in the black, while gold and platinum have recovered most of their early losses.
Gold traded down to $1,641.00 yesterday morning and began trying to bounce back above $1,656.00, which is the 21-day moving average. Look for resistance at $1,662.00 – $1,664.00 with stiff resistance from $1,675.00 – $1,680.00. Support stands at $1,635.00 and at $1,620.00. Keep an eye on silver as it appears to be gaining support from the equities rally. The 100-day moving average in silver is $32.02 and a move above this level could be the catalyst for the complex moving higher.
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.