Gold and Silver Asleep Overnight

Category: Market Reports
Author Name: Walter Pehowich
Posted: 01-11-2017 12:29:00 PM

According to my friends over the pond, the physical market there seems to be taking the same sleeping pill as both buyers and sellers are absent from the market.

Gold and Silver seemingly took sleeping pills overnight as they are locked in a trading range between current support and resistance levels. Nonetheless we see both CME open interest figures rise and Gold ETF increases overnight.

Counter forces: slightly stronger U.S. Dollar and softer bond yields are keeping the price of gold and silver locked in for the time being.

A lot of folks watching the action in the relationship between the U.S. Dollar and the British Pound yesterday as the pound reached a 31-year low against the dollar. This comes on the heels of Prime Minister Theresa May‘s comments that the UK is likely to leave the single market in a so-called “hard” Brexit. She also said her country can’t keep “bits of the EU” and that the British Pound “isn’t safe from bears until we know what will replace the single market.”

According to my friends over the pond, the physical market there seems to be taking the same sleeping pill as both buyers and sellers are absent from the market.

Part of the problem, both here and in Europe, is the lack of any substantial news hitting the wires to give the price of our metals a kick in any direction.

Same technical levels are intact as the next level of resistance is the February gold contract seen in the $1,195 area and the new level of support is now $1,182. My technical buddies claim that with no news to talk of they expect that level of support at $ 1182 to be challenged today before we head any higher. They also said they expect that the price of silver is more vulnerable to the downside than gold at the moment.

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About The Author

Author Name: Walter Pehowich
This editorial has been prepared by 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.