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 another round of selling in the precious metals complex, as recent buyers continued to exit the market and speculators from the short side added pressure through the day. Selling pressure had begun the previous night in Europe, as Christine Lagarde, Managing Director of the IMF, was quoted as saying she would support further sales of IMF gold if the proceeds were used to support low income countries. By the close of trading in the US, all four metals we trade recorded significant losses but managed to close above the key support levels of $1,625.00 in gold and $29.75 in silver. Overnight prices in Europe were once again under pressure, as gold and silver broke below yesterday’s lows but continued to hold above technical support.
This morning brought us the Non -farm Payroll report. The forecast for April job creation was between 160K – 175K new jobs and the number came in at only 115K, which will certainly add to those that are calling for QE3 to support an economy that now clearly appears to be losing momentum. The weekend brings us elections in France and Greece, which will be closely watched. In France, a victory by challenger Francois Hollande should be supportive for precious metals, as he is in favor of scrapping and renegotiating the European Stability Pact with Germany. This should bring uncertainty and anxiety to equities markets and buyers to our markets.
Good luck and 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.