Current Thoughts for 8/16/2016

From the Trading Desk

As has been typical during this last month of summer so far, it has been yet another quiet start to the week for the precious metals.  Gold remains range bound with support at the recent double bottom of $1,330 and resistance at $1,360, the seventh point on a trendline dating back to July 6th.  After an incredible first half of the year, the market’s interest in gold appears to be fading of late.  On Friday, total assets in exchange-traded funds dropped by 420,000 oz, the largest drop of the year.  Comex net long positions have fallen for the fourth time in the last five weeks.  Yesterday, US Securities and Exchange Commission filings showed that George Soros sold most of his SPDR Gold ETF shares in the second quarter.  Leveraged money certainly seems to be growing wary of gold exposure as the summer comes to a close.

Keep an eye out for the FOMC tomorrow at 11 AM PT.

We can expect volatility on Fed weeks where they either conduct policy or the minutes of that policy decision but this week we have just been range bound. Gold should have shot way higher today, and did try to for a bit, as the dollar fell hard. But then gold gave back much of the gains. Silver was higher earlier and finished the day red.

Anything can happen still and we need some ranges to be broken. From a micro level, I see market weakness once the S&P 500 futures break 2177 which can hurt miners. We only broke 2177 for a little bit today. AU was the first I see to show weakness.

Doug Eberhardt is the author of the book Buy Gold and Silver Safely and his new book on investing Illusions of Wealth is now available.


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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


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