From the Trading Desk
On the Friday immediately preceding Memorial Day weekend, gold closed out the week disappointingly after trading lower for five consecutive days. In the absence of the US market on Monday of this week, that weakness continued and in thin trading conditions, gold tested all the way down to psychological support at $1,200. It immediately rebounded off this level though and has spent the rest of this week consolidating between $1,205 and the 100 day moving average, currently at $1,221.50. Physical demand out of Asia remains subdued but global ETFs added 137,000 toz to their holdings yesterday. In North America, demand for fabricated coin and bars is still weak and premiums continue to soften. Most participants seem to be on the sideline right now ahead of US non-farm payroll figures out tomorrow at 5:30 AM Pacific Time.
All eyes will be on the non-farm payroll figures tomorrow. If we have a bad report I will view this as very bullish not just quasi bullish as it may be a sign the Fed will NOT raise rates mid-June. If it is a good report, then it will be gold negative. The dollar will act accordingly.
Until then I don’t see Asian trading do much but we have started out a hair lower with gold at 1210.35 and silver 15.98. The $1,200 and $16 marks are still support levels till broken.
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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