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.
Yesterday brought us an interesting day, with increased volume and intraday volatility but in the end prices ended close to unchanged and range bound. Weaker than expected U.S. economic data was a surprise as jobless claims, home sales and the Philadelphia Fed Manufacturing Index all missed consensus expectations and took metals and most commodities lower shortly after the open.
With gold making a fresh two-week low and barely holding $1,630.00, it began to look like a significant move might be coming, but the selling abated and physical demand along with short covering soon had all four metals recovering their early losses. As gold broke back above unchanged at $1,640.00, a large buy stop was elected on the Comex and we were at $1,646.00 very quickly, which brought on more buying as gold eventually topped out at $1,654.00 and silver flirted with $32.00. As volume began to disappear in the afternoon, metals were not able to hold their morning gains and settled around unchanged and in the middle of the day’s range.
As we continue to search for direction and wait for a political or economic event that propels us into a new trading range, we continue to focus on the technical picture. Support will be found for gold between $1,630.00 and $1,625.00 with resistance from the mid $1,650.00’s to the low $1,660.00’s. Silver continues to find good physical demand below $31.50, while resistance stands at $32.00
Have a good weekend,
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.