From the Trading Desk
Gold came into the US session today feeling heavy and looking like it would break below support at $1,230, the fourth point on a trendline dating back to mid-January. It was given a lifeline by weaker than expected US economic data and was able to catch bids to reverse its course though. US durable goods disappointed, coming in at .80% for the month of March versus the consensus of 1.9% by economists. The USD fell to session lows against the euro while gold quickly rallied to above $1,240. Silver has held its ground on gold’s moves lower recently and continues to consolidate impressively around $17. Today, silver finished above $17 for the fourth time in the last five trading sessions and closed on the highs of the day.
Traders will likely keep positions lean ahead of the FOMC tomorrow. The FOMC statement begins at 11 AM PST.
The Fed can’t surprise anyone any longer and now has to face the fact they can’t raise rates. This news should already priced into the gold market too, as it has buoyed it for the last 45 days or so. But it is not taking this information and blasting off higher. This is telling to me and still leads me to believe we have one more trip south for the metals. I still maintain the short term strength and we’ll see tomorrow if we get one last push higher before the reversal too.
Received the book back from editor and one last read through and will be off to the final process.
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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