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Gold and Silver Drifted Lower This Week

Gold and Silver Drifted Lower This Week
Category: Market Reports
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Posted: 03-11-2015 03:03:00 PM

While precious metals are taking it on the chin this morning with gold, silver and platinum all trading below their 10, 50 and 100 day moving averages, the lower price points appear to be welcomed by our corner of the market as physical demand is very brisk this morning.

Monday through Thursday saw gold and silver mostly drift lower despite the occasional bounce. Daily trading ranges and overall volume have been below average as many market participants looked elsewhere for a market that had greater intra-day and short term volatility like the FX market. This morning’s release of the February Non-Farm Payroll report is a game changer and has broken precious metals out of the recent range to lower levels as gold and silver have already tested $1,175.00 and $15.75. Employers added 295,000 new jobs in February which far exceeded the estimate of 240,000 new jobs and the unemployment rate fell to 5.50 percent, which is the lowest it has been since May of 2008.

The likelihood for a rate hike in June has increased sharply now, but we will get a clearer picture on March 18th after the next FOMC meeting. On the back of this report the USD rallied sharply as the EUR/USD rate has broken below 1.09 with many commentators now calling for the exchange rate to test parity in the coming months. The yield on the 10-year bond has shot up to 2.20 percent, which is the highest yield of 2015 as commentators are now talking about the rate moving up to 2.50 percent in the second quarter. While precious metals are taking it on the chin this morning with gold, silver and platinum all trading below their 10, 50 and 100 day moving averages, the lower price points appear to be welcomed by our corner of the market as physical demand is very brisk this morning.

 

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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.

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