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Gold Dips Yesterday With Stronger USD

Gold Dips Yesterday With Stronger USD
Category: Market Reports
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Posted: 04-08-2015 10:54:00 AM

Check out what is going on with precious metals this week with a Market Report from ModernCoinMart (MCM).

Despite the continued run higher in crude oil yesterday, which broke above $54.00, gold and company continue to be most heavily influenced by the USD. Following the weak employment report on Friday, precious metals spiked higher as the USD weakened with the Euro trading above 1.10 as gold took a run at $1,225.00. By the close yesterday, the USD had regained much of the recent loss and gold was testing support as it closed in on the 50-day moving average at $1,205.50. Silver was unable to hold above $17.00 and will now look to hold support on either side of $16.60 where the 50- and 100-day averages currently reside. Following recent dovish comments by several FOMC members, it is difficult to see a rate hike in June, which should lend support to our market.

At this point the focus likely shifts to economic data that may or may not support a hike in September. Yesterday, Minneapolis Fed President Kocherlakota made a case for rate hikes not beginning until the second half of 2016 with a goal of the Federal Funds rate not reaching 2.00 percent until the end of 2017. While he is likely to be out voted by his peers and rates will move higher sooner than that, his comments could be indicative that the FOMC is growing increasingly concerned about the U.S. economy. We will get a better handle on the FOMC’s views later today when the minutes from last month’s meeting are released. This morning is off to a quiet start with all four metals probing lower on light volume.

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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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