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.
Precious metals, the energy complex and global equities markets have continued to sell off since my last commentary on Monday. Pressure on our markets is coming from both the fundamental and technical fronts. As concerns continue to mount in Europe, the “safe haven” play has seen market participants buying the USD and US Treasuries. With Greece once again being the headline country, there is growing concern that the results of this past weekend’s elections are unlikely to enable the two major parties to form a coalition government.
Additional elections are likely to take place in June, but the possibility of a Greek default or exit from the EU is now a real possibility. Alexis Tspiras, Syriza’s anti- austerity leftist leader, has pledged to not support the previously agreed to bailout programs if his party is successful in leading a new coalition government.
On the technical front, gold has fallen below previous support at $1,625.00 and psychological support at $1,600.00. With all of the widely watched moving averages well above the market, we are likely to test $1,563.00, which is the low for the year and was recorded on January 3rd.
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.