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.
Overnight saw buying continue during the Asia Pacific morning and it looked like silver might have legs to take a run at the 100-day moving average at $32.00. As European traders entered the market, the USD began to rally and all four metals began to sell off on very light volume. While platinum and palladium held up a bit better, gold and silver continue to be vulnerable to even light selling pressure. This morning finds gold and silver probing the downside while trading in the middle of the overnight range while platinum and palladium are currently unchanged.
Yesterday gave us another volatile trading day with below average volume, as gold and silver continue to trade within their very well-defined recent trading ranges. While initially firm, gold fell almost $20.00 to $1,635.00 in early U.S. trading on rumors that India was exploring ways to reduce the country’s gold consumption and imports. Shortly after this move, silver gained traction as equities were rallying sharply and lead the complex higher on a rally that lasted throughout the balance of the day.
Support in gold stands at $1,635.00 and $1,625.00. A break below $1,625.00 will likely bring us a test of $1,605.00 – $1,595.00 where I would look for the market to hold. Resistance will be encountered at $1,662.00 and the 100 day moving average at $1,674.50. Data released by the Comex shows that registered silver stocks at the Exchange’s five warehouses rose to their highest level in 15 years and now stand at 141.59 million ounces. This is a clear sign that physical demand is down, and further highlights why premiums are under pressure.
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.