Gold, silver continued with the -100 score today while GDX had a late move higher to finish with a -90 score. It seems that the $1,200 level in gold is providing good resistance and the $17 mark for silver thus far.
Article Posted to Seeking Alpha
The last article I wrote for my blog, Gold Is Not In a Bear Market was finally approved for publication on a financial website I sometimes write for called Seeking Alpha. Some of you who don’t follow me there may enjoy the answers I gave to the various commenters who questioned me on things like what I think a bear market is, my thoughts on gold mining stocks and should I sell my gold or hold onto it. You can find the exchanges by going here.
From the Trading Desk
Gold and silver had a rare up day yesterday with the US 10 year Treasury yield moving lower by about 10 basis points to 2.40%. The rally for the precious metals was short lived though as all four are in negative territory once again today. The USD has rallied from its lows in Asia in the overnight session which has put pressure once again on gold. In the early NY trading day, data was released showing that US jobless claims unexpectedly fell last week. Jobless claims dropped by 8,000 to 287,000 and the number of people already collecting benefits fell to an eight year low.
Gold has been consolidating above $1,200 and looks decent from a technical perspective above this level and especially above the double bottom of support at $1,180. Physical demand continues to accelerate around the world. Indian imports hit a 16 month high in September of over 650,000 toz. A relaxation in import duties, the lower spot price, and the festive season have been the major contributors for increased demand in the Asian country. Pool metal at major refiners is also getting tighter as the refiners scramble to make kilo gold bars to send to China. Fabricated silver product in North America is becoming further delayed in certain products and the Royal Canadian Mint have even gone on allocation with silver maple leafs. This means that they are now restricting the amount of silver maple leafs each distributor can purchase each week as demand outweighs current supply. Silver has been consolidating around $17 and may be able to move higher should gold have a sustained move up as well.
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.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.