20
Jul

Current Thoughts 7/20/2017

From the Trading Desk

The euro has been on a steady rise so far in 2017 and it reached yearly highs today on the heels of the European Central Bank press conference.  ECB President Mario Draghi said the bank saw signs of “unquestionable improvement” in European Union growth and intimated that plans are underway for policymakers to begin adjusting their quantitative easing program.  The euro rallied to over 1.16 and dragged gold back over $1,240 with it.

 

Gold hasn’t seemed to really react to any headline concerning President Trump but today it appeared to jump higher on the latest Trump headline.   The news was that special counsel Robert Mueller is now focusing the attention of the Russia investigation on Trump’s business transactions.  Gold made three week highs and challenged, yet failed, at the convergence of the 50 and 100 day moving averages around $1,248.50.

 

The latest data from the CFTC showed that speculative short positions on Comex silver are at 2 year highs.  This information was as of last week when silver was under $16.  If gold is able to break above its current range, hedge funds and money managers that are short silver will be forced to cover their positions which could lead to a volatile spike higher for the white metal.

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About Doug Eberhardt

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

Disclosure:

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.

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