Gold fell to a 7 month low and silver to a 14 month low today with their scores going from -60 to -90 respectively. Silver broke its 2013 intraday low but managed to close above it. The yellow metal hit a low of $1,233 before closing up $5 off the low, but still above its 2013 low in the $1,190’s. I had said that these 2013 lows were like a magnet, drawing gold and silver to them and that seems to be what we are seeing. Interestingly enough, after breaking to lower lows intraday, the mining ETF’s all rebounded higher. Are miners leading gold or was it that they were just beaten down and due for a bounce? We should find out soon enough.
The USD is still trading near a 14 month high against a basket of currencies and US 10-year treasury yields are at their highest level in over a month. USD strength combined with the easing of tensions between Russia and the Ukraine have caused gold to fall to an 8 month low today. Demand in Asia has returned a bit over the past few days but not in a robust enough way to lift gold up just yet. Physical demand out of Asia will likely accelerate the closer gold inches towards $1,200. After closing below $19 yesterday, silver’s trading action is again looking bleak. Next support for silver is coming in at $18.20 which is a level it has only touched once since 2010. It should be closely watched by traders and investors.
For those who haven’t read it yet, I posted an article on the main blog The Dollar Has Not Crashed Like Gold Bulls Thought It Would – You can subscribe to the blog articles (not Current Thoughts on Gold and Silver) by filling in the Request for More Information form on the right and checking the box; “To keep up to date with the precious metals market, sign up to receive our blog updates via email.”
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About Doug EberhardtDoug 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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