From the Trading Desk
The markets, from equities to commodities, are quiet today ahead of tomorrow’s much anticipated FOMC statement. While it is widely expected that the Fed will increase the benchmark rate by .25%, participants are still sidelined today ahead of the decision. Volume in Comex April gold stands at only 155,000 lots so far today, the lightest it has been since April became the active contract month at the end of January. Speculative Comex longs fell from three month highs in the week to March 7th and dropped by 2.7 million ounces. Since gold failed multiple times at its 200 day moving average a few weeks ago, the selling pressure on the yellow metal has accelerated. For now and until the FOMC tomorrow, gold is gravitating towards $1,200 though. Silver has fallen nearly 10% in the span of two weeks and has moved below all major moving averages. Physical demand has, somewhat surprisingly, not picked up on this move lower. It appears that investors are still waiting for a further move south in silver before entering into new positions.
Economic Data for Tomorrow
Lots of data tomorow but it’s all eyes on the Fed.
Yesterday I said I still want to tread lightly as we have the debt ceiling issue and Fed both on March 15th. The same is true for tomorrow but the data might get us some early trades. I will lean lower but open to the data to confirm.
One day later and we got weak right away. Neutral overall right now but RUSS is still green on the weekly and where you can concentrate. I would keep an eye on YANG too.
TLT I like into the Fed as we may get some good news for it since higher rates already are priced in here.
Precious Metals and Mining Stocks
I said yesterday give them 48 hours too or going to be issues. We got the issues sooner than I wanted. Gold in after hours trading is holding steady at 1198.50 and silver 16.88. Prefer (obviously) they start a run up into the Fed, but it will depend on the dollar first moving below 101.51. It is 101.62 now. JNUG 5.77 last trade.
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
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