The Market Gage – Precious Metals Open on the Defensive

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

Precious metals opened the trading week yesterday via the electronic trading platform on the defensive as the first move was lower. This was followed by physical demand throughout the Asian morning as all four precious metals turned positive where they stayed through the balance of their Monday. Gold took a run at $1,250.00 in London this morning, but so far the resistance band has held and early U.S. trading sees gold looking for direction as it drifts around $1,245.00.

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The Market Gage – Extremely Volatile Week Draws to Close

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

For many the closing bell this week will be a welcome relief as extreme volatility in equities, bonds and energy products have all market participants wondering if we have seen the lows. Growing concerns over the German economy as their bond yields continue to fall and uncertainty over the path Greece may take as one of their political parties again pushes for leaving the Eurozone likely means the rollercoaster ride will continue for global equities next week.

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The Market Gage – Economic Headline Tug of War Continues

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

Precious metals had a rather quiet Monday and Tuesday as the tug of war continues between U.S. equity weakness, lower bond yields, very weak German economic data, a strong USD and the collapse of energy prices led by the fall in crude oil. Gold’s sensitivity to a move in the USD was front and center overnight as all four precious metals moved sharply lower during Asian trading hours as the USD was probing higher, gold and silver traded down to $1,222.00 and $17.02.
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The Market Gage

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

Precious metals began the week yesterday with a move higher on the electronic trading platform, as gold and silver were both bought aggressively. The catalyst for this was dovish comments made by Federal Reserve Vice Chairman Stanley Fischer who addressed an IMF / World Bank Conference. The comment that received the greatest attention was this one, “if foreign growth is weaker than anticipated, the consequences for the U.S. economy could lead the Fed to remove accommodation more slowly than otherwise”. The interpretation is that the Fed policy makers are concerned with the sharp economic downturn in Europe and they are not anxious to see the USD rally further.
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The Market Gage – FOMC Minutes Show Concern Over Economic Growth

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

The dovish tone of the FOMC minutes brought about the expected reactions in all markets this week, driven by the growing concerns of voting members over the strength of the USD and its negative implications for economic growth. Couple this with growing fears of a global economic downturn, led by the woes in Germany, and all of a sudden interest rate hikes in the first half of 2015 no longer look like a guarantee. Besides the continued sell-off in global equities and the extreme volatility in U.S. equities this week, we are also seeing a major sell-off throughout the energy complex and a continued rally in the bond market.

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The Market Gage – Precious Metals Trying to Probe Higher

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

Precious metals have consolidated and are trying to probe higher since the recent lows that were made on Sunday night / Monday morning, as the USD has backed off which has likely caused some of the shorts to begin covering while physical demand, especially in silver, remains very strong. The headline of the week so far is the global sell-off in equities on the back of the International Monetary Fund lowering their forecast for global economic growth for this year and 2015. This comes on the heels of continued weak economic data from Germany as the IMF stated that the U.S., Europe and Japan could face years of sluggish economic growth.

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The Market Gage – Precious Metals Bounce Back this A.M.

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

Precious metals dropped sharply across the board when trading resumed yesterday via electronic trading. Gold traded down to support at $1,183.00, while silver matched Friday’s low at $16.65. Platinum fell to $1,186.50 and for a brief time was trading flat to gold, while palladium recorded a low of $735.00. This morning finds all four metals have done a reversal and are trading above their Friday settlement prices as good physical demand and short covering were seen in Europe and continue to be seen in early U.S. trading.
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The Market Gage – Bears Pressure Precious Metals

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

The bears continue to be in charge as precious metals are looking at sharp losses this morning as the USD continues to strengthen. While the surge in physical demand has continued throughout this week, it has not been enough to take on the speculative short sellers and the long positions that continue to be liquidated.
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The Market Gage – Headlines Fail to Drive Precious Metals

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

Precious metals continue to shake off all headlines that I would expect to support gold and the precious metals complex. The combination of Hong Kong citizens protesting in the streets and uncertainty over what Russia will do to calm concerns over their currency and capital markets has had no impact, as the strength of the USD remains the driving force as prices continued the sharp sell-off yesterday despite the impressive demand the physical market has seen throughout the month of September.

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The Market Gage – Precious Metals YTD Overview

“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.

As we prepare for the final quarter of 2014 and look beyond into 2015 I thought an overview
of the market would be appropriate and not begin the week continuing to focus on the most recent sell-off.

1. Overview – Gold and silver prices have fallen throughout much of 2014, despite the increase in geopolitical events this year that often drive investors to our market as they look for a safe haven investment. This year, as was the case in 2013, has seen gold and silver succumb to inevitable policy changes be the F.O.M.C. which will begin moving interest rates higher in 2015, thus strengthening the USD. In addition, the U.S. equity market has been on a record run higher since gold made its record high price above $1,900.00 as investors consistently reallocate their portfolios looking for the greatest return.

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