From the Trading Desk
Ahead of yesterday’s FOMC decision, the precious metals were on the defensive after better-than-expected manufacturing and private sector employment data weighed on the complex. The ADP jobs figure widely beat expectations, with an increase of 246,000 jobs versus the consensus of 165,000, and the USD rallied while gold slid lower. Gold moved higher as the FOMC approached and then rallied further during and after the meeting. The Fed left rates unchanged and the terminology was vague as to the timing of the next rate increase. The market took this as largely dovish which allowed gold to reach three month highs overnight. The 100 day moving average at $1,226 held perfectly as resistance and this remains the short term target overhead.
US Mint silver eagle sales in the month of January amounted to 5,127,500 coins, down 14% from sales in January of 2016. It was the second lowest amount of coins sold in January in the last seven years (the other being 4,775,000 coins in Jan 2014). Silver still managed to rally over 10% this past month and the near term target is the 100 day moving average at $17.90.
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.
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