The Market Gage – Precious Metals Continue to Hold Higher Position

“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 hold the recent move higher as gold finds good buying in the low $1,190.00s and silver has held above $16.00 ecious metals came off the ropes with a big flurry on Friday just when it looked like a knockout was on the back of physical demand. Gold has broken above $1,200.00 a few times now, mostly in overnight trading, as demand out of China is reported to be very heavy, but the landscape changes a bit during U.S. trading as the USD continues to probe higher on the back of good economic data. Russian buying of gold continues to draw a lot of attention and of course is very supportive. This week, Bloomberg reported that the Chairwoman of the Russian Central Bank confirmed they have purchased 150 metric tons so far this year.
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The Market Gage – Japan’s Q3 News Drove Gold/Silver Wkend Trading

“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 came off the ropes with a big flurry on Friday just when it looked like a knockout was imminent. As the reversal gathered momentum several factors contributed to gold breaking above $1,180.00 while silver went flying through $15.75 and then $16.00. The reversal of USD strength and crude oil weakness provided early support and started the short covering rally, but the market really took off when large buy orders were reported in the OTC gold options market along with several orders that were executed on the futures exchange. The rumor mill continued with speculation about Russian and Chinese buying in gold providing one last move higher before the day ended.
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The Market Gage – Crude Oil Drop Pressures 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.

On the back of another big drop in crude oil prices yesterday and this morning, precious metals are sharply lower across the board. Add to this a strengthening USD, a U.S. equity rally that shows no sign of backing off, and non- existent inflation and we find precious metals have become an asset class that is finding no demand outside our corner of the market where physical demand remains brisk. According to Bloomberg, holdings in the global ETF’s have fallen to their lowest levels since May of 2009.

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The Market Gage – Physical Demand for Precious Metals Remains Brisk

“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, led by gold, had a very active Veteran’s Day trading session yesterday, as rumored buying from China brought about an afternoon rally that saw gold top out at $1,172.00. Physical demand continues to remain brisk this week as physical buyers continue to trade actively. Trading in Asia last night saw a tug of war between aggressive physical buyers and “paper sellers” who are reacting to the continued strength of the USD against the JPY.
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The Market Gage – Bears Waiting for Heavy Physical Demand

“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 traded on heavy volume last week, as prices continued moving lower in reaction to hawkish comments from FOMC members and stimulus programs abroad which continue to strengthen the USD. Friday’s rally in gold may have caught many by surprise, as a slightly weaker than expected employment report saw the USD back off while bonds rallied. The bears though were not scared off as gold was unable to break above resistance beginning at $1,180.00. Trading resumed yesterday, with a continuation of the heavy volume, but despite excellent physical demand throughout the Asian trading day, gold ended the session $10.00 lower than where it opened and never challenged $1,180.00.

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The Market Gage – FOMC Confirmation Hits 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 hawkish tone of the FOMC press release along with confirmation that QE was not going to be extended brought about the expected reaction in precious metals on Wednesday afternoon as the market sold off. Despite the FOMC’s pledge to keep interest rates at historically low levels, the selling in our market continued yesterday as the excellent physical demand was no match for long positions that were being liquidated and speculative short positions that were being initiated and increased.

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The Market Gage – Quiet Week Continues for 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 trade quietly this week as we await word from the FOMC later today on the fate of QE and look for guidance on the path of interest rates. Perhaps equity traders know something the rest of us do not and today’s statement will be dovish as the most recent rally in U.S. equities continued with a flurry yesterday. Crude oil, which has been in the headlines recently, continues to recover from the dip below $80.00 and is trading at $82.50 this morning. A move back above $85.00 would be supportive for gold as it continues to battle with resistance which is building in the mid-$1,230.00s.

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The Market Gage – Precious Metals Begin Week Quietly

“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 begun the week on a quiet note with gold and silver probing lower while platinum and palladium do the opposite, trading above Friday’s settlements. All eyes will be on the FOMC meeting this week which concludes on Wednesday. The subsequent press release is widely expected to confirm the Fed will end QE and will cease the current bond buying program. Any hint of another stimulus program or a delay in curtailing the current program would be a surprise and likely bring a rally to our market. Hawkish comments about interest rates will further support the USD and not be well received by commodity and precious metals traders.

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The Market Gage – Technical Factors Dominate 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 are being dominated by technical factors at the moment as geopolitical events and economic data are being discounted by market participants that are happy to “trade the range.” This week’s trading activity is a good example, as gold and silver failed to hold $1,250.00 and $17.50 selling quickly entered the market. Physical demand picked up during the sell-off and silver holding $17.00 appeared to be the catalyst for short term traders to lock in profits.

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The Market Gage – European Headlines to Watch

“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.

Despite funds continuing to flow back into U.S. equities yesterday and the USD moving higher against the Euro, precious metals probed higher led by gold breaking above $1,250.00. Unfortunately there has been no follow through and all four precious metals are lower in early U.S. trading which follows a very quiet Asian day and European morning.

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