Somehow forgot to hit “Publish” on this on Thursday, apologies.
Gold and silver languished today even with a report showing U.S. jobless claims increased more than forecast. The miners couldn’t get past yesterday’s highs and JDST broke yesterday’s high and was the star of the day where a trader could be sitting on a $2 gain. As I said in yesterday’s report, it is still the only ETF with a weekly green triangle and trading long the miners would still be viewed as risky until they bust a move to get the triangle you see below green.
From the Trading Desk
After a swift two week sell off, gold and silver have spent this week consolidating in their new ranges. The USD and equities remain strong but physical demand is helping to buoy the metals a bit. Short term forwards in gold have slipped into backwardation recently as refiners borrow metal to make kilo bars to send to Asia. The Shanghai arb has crept up versus London, reflecting that Chinese physical demand is reentering the market. Besides from physical demand, gold lease rates have also moved higher as speculative shorts are forced to borrow metal to maintain their positions. Gold coin and bar demand is strong but not nearly as impressive as that of silver. Major sovereign mint coins, especially from the US Mint and RCM, are either unavailable or are trading at above-normal-market premiums. Even private mints / refiners bar and round premiums have inched up in sync with further delays for delivery.
USO
USO broke that $29 mark and is in full bear territory.
UGAZ
UGAZ I said yesterday was “toast” and today it lost 12%.
TZA
I had said to put TZA on your radar. A couple days ago. It fell a bit and bounced up today 2.29% to close at $13.38. I would be buying the dips but a more conservative trader may want to wait for a better entry. The question on everyone’s mind with the stock market is, “are we topping?” While I am still overall bullish on the stock market, I am just contemplating a pull back for a trade is all.
Next report will be Sunday. These Gold and Silver Outlook’s are published Sunday thru Thursday.
11-12-14 GLD CHART
11-13-14 SLV CHART
11-13-14 GDX CHART
11-13-14 JDST CHART
11-13-14 JNUG CHART
11-13-14 NUGT CHART
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About Doug EberhardtDoug 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
Disclosure:
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.