Dillon Gage is proud to offer the following insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals. We offer Roy’s comments several times each week.
Trading got off to a quiet start yesterday with light physical demand and a bit of short covering being noted throughout the Asia Pacific session. This pattern highlighted a quiet European morning and appears to also be the case in early U.S. trading. With very little economic data being released globally today, we may be in for a quiet day, but keep an eye on U.S. equity markets which are under heavy pressure this morning and could weigh on metals as the day progresses.
This week will bring us a European Summit in Brussels on Thursday and Friday which will likely add to the volatility and anxiety of all markets. Headlines regarding Greece, Spain etc. and any changes in policy that might affect the EU or the Euro currency will certainly bring fireworks that could rival the action we saw last week. Speaking of Spain, in advance of the summit later this week, they have officially asked the EU for a bailout to shore up their beleaguered banking system.
Support and resistance levels in gold are as much psychological as they are technical at the moment. Support at $1,550.00 could be critical as a failure to hold would have the market talking about $1,500.00 and lower, while a move above $1,600.00 would go a long way in restoring investor confidence and could bring us another test of resistance at $1,640.00.
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.