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.
With the London market back from their long weekend, overnight volume has increased and the precious metals rally, which began on Friday with very weak U.S. economic data, has continued. There have been few headlines from the overnight G7 meeting, but so far there is no market rattling news with regard to Greece. Germany is pressuring Spain to accept assistance from the European bailout fund and this should add a little calm to the storm. The lack of news encouraged European traders to sell the USD as the Euro briefly traded above 1.25 and has fueled an overnight rally in our market.
This morning finds the precious metals complex continuing to move higher across the board with gold trading at a 1-month high as it chips away at the resistance at $1,640.00. As gold continues to lead the way, resistance will next be encountered between $1,675.00 and $1,685.00, and then again at $1,700.00. Silver will run into resistance between $29.85 and $30.00, but a break of $30.00 could see the market trying $31.50 very quickly.
Gold received very good news compliments of the physical market yesterday, when data released from Hong Kong showed their exports of physical gold to China increased by 60 percent during the month of April.
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.