Gold Has Settled in Its New Trading Range

Category: Market Reports
Author Name: Walter Pehowich
Posted: 12-07-2015 01:04:00 PM

If you want to get a sense of where the price of gold is headed, most dealers say they like to keep a close eye on the Euro and the dollar index markets.

Friday’s job number short-covering rally seems to be short lived. Gold has comfortably set in its new trading range between $1,070 and $1,090. For my technical enthusiasts, $1068.20 support and then $1,052.30 will be the levels to look for. And of course to the upside, nothing between here and $1,100 is worth getting excited over.

Silver riding the back of Friday’s Gold rally seems to be overbought here. Wall Street traders continue to ignore the physical demand stories from the retail markets and are comfortable playing the market here from the short side.

With just a week or so before the FED meeting, gold traders seemed to have adopted a “wait and see attitude” before taking on new positions. For the traders who have to play to overcome boredom, a small short position is in order just to keep their sanity.
Even after Friday’s rally, the majority of the traders I spoke with still have a bearish attitude in the gold market.

Crude below 39 dollars and the Euro just above the 108 area seems to have little impact on precious metals pricing this morning. If you want to get a sense of where the price of gold is headed, most dealers say they like to keep a close eye on the Euro and the dollar index markets.

For those folks who like to follow the ETF market, gold redemptions continue to fall near the 2015 lows at 1,486 tons. Silver ETF holdings seem to have steadied of late at 18,934 tons as of the end of last week.

The question remains, where is the bottom in the platinum and palladium markets? Most traders are hesitant to put a bid in these markets as platinum and palladium miners just keep holding their breath hoping for some stabilization in the price.

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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.