From the Trading Desk
The precious metals aren’t doing much as market participants already seem to be checked out with attention focused on the holidays. At time of writing, volume on the Comex exchange for gold is at a paltry 65,000 contracts and the yellow metal has traded in an unimpressive $7 range today. There was a brief moment of activity at 5:30 AM PST when data revealed that third quarter GDP in the US grew by 2.00%, slightly beating estimates of 1.90%. Gold sold off from the highs of the session but has since stabilized in the mid $1,070s. Near term resistance is at the double top of $1,080 and gold will likely need impetus from other markets to break through this area. The euro is up for the third consecutive day but has significant resistance looming overhead at the convergence of its 100 and 200 day moving average around 1.105. If the euro can break through this major level, gold has a good chance of moving higher as well.
Silver is up nearly 4.50% over the last three trading days but is looking vulnerable as gold has sold off from its highs. Offers in silver are waiting ahead of $14.50 while dips will likely be bought around psychological support at $14. With Christmas and New Year’s right around the corner, I would expect the precious metals to have relatively muted activity as the year comes to a close.
Miners opened higher today with the dollar down but gold just didn’t want to play along and headed lower. Markets were up with oil today giving the typical rally heading into the holiday but we still have a few more trading days left. A market that trades with the price of oil is not a strong market to trade long.
We have to note that the dollar was down with gold today. There seems to be more pressure on the dollar of late and gold has paid some attention the last few trading sessions but today I think is just taking the day off. We played JNUG/DUST in the trading room at Seeking Alpha then switched to JDST/DUST and profited from both.
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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