From the Trading Desk
With the US off yesterday for MLK Jr. Day, gold pressed higher yet again in thin trading conditions. President-elect Trump’s remark that the USD is “too strong” caused the USD to sell off while fresh longs lifted gold further above $1,200. Overnight, Far East demand remained steady with the Shanghai Gold Exchange trading at $19 premium versus the London spot market. Gold ETFs finally bucked the liquidation trend, which has been going steadily down since October of 2016, and added 81,000 toz yesterday. While US Mint sales of eagles in the domestic market have been steady this month due to the release of new 2017 dated coins, overall coin and bar demand in the US is weak. Inventory of most sovereign and private mint fabricated product is plentiful with margins hovering around historic lows.
Keep an eye out for crude oil inventories and Fed Chair Janet Yellen’s speech on Thursday.
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.