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FOMC Weighs Down Precious Metals - Market Report for 08/21/2014 - ModernCoinMart (MCM)

FOMC Weighs Down Precious Metals - Market Report for 08/21/2014 - ModernCoinMart (MCM)
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Posted: 08-21-2014 12:48:00 PM

Precious metals are continuing to feel the weight of yesterday’s hawkish FOMC minutes which showed that several committee members discussed the possibility of raising interest rates sooner than expected

Precious metals are continuing to feel the weight of yesterday’s hawkish FOMC minutes which showed that several committee members discussed the possibility of raising interest rates sooner than expected, citing stronger than expected job creation and the lower unemployment rate. The reaction of the USD was an immediate rally as the USD Index moved to an 11-month high pressuring gold and most commodities.

While physical demand has been steady the past 2-weeks, the gradually lower spot prices have not brought an increase in demand which has been disappointing. After a quiet Asian trading day which saw gold fail to hold $1,290.00, it moved lower in early European trading and when it failed to hold the 200-day moving average at $1,285.00, a large sell order was executed on the electronic trading platform which drove gold down $10.00 to $1,275.00. This morning finds our corner of the market coming to life as physical buying in gold and silver is very good. The question to be answered is, do we hold here and grind higher or do gold and silver move lower and test $1,250.00 and sub $19.00. Keep an eye on the USD as it appears to be the driving force at the moment.

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About The Author

Roy Friedman

This editorial has been prepared by Roy Friedman of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not prove to be true, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept the foregoing.

This editorial is republished by MCM with permission from Dillon Gage Metals. It is not intended, nor should it be taken, as investment advice. No warranty as to the accuracy or validity of comments made within this editorial is expressed or implied by MCM or its staff. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals.

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