From the Trading Desk
Gold’s 50 day moving average held as perfect support for five consecutive trading days and helped form the base for gold making three week highs so far this week. The USD remains weak with the DXY index, a broad-based barometer of USD strength, at lows not seen since August of 2015. The Japanese Yen continues to dominate FX headlines with the Yen reaching 17 months highs versus the USD. Crude oil has staged an impressive recovery and is well above $40 again, up over 4.50% today. This was in spite of the IMF cutting 2016 global growth forecasts from 3.40% to 3.20%.
Since Thursday, silver has rallied nearly 7.5% and today extended gains to reach six month highs. The move today was even more impressive considering that gold traded predominantly sideways. After a near vertical trajectory up over the past four days, I would expect to see some profit taking occur in silver. Resistance is above at the six month high of $16.35 while $16 should prove to be psychological support in the near term.
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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