Home InfoVault Market Reports Gold Kicks Off Q2 In The Precious Metals Driver's Seat

Gold Kicks Off Q2 in the Precious Metals Driver's Seat

Gold Kicks Off Q2 in the Precious Metals Driver's Seat
Category: Market Reports
Author Name:
Posted: 04-01-2015 09:23:00 AM

Gold is challenging $1,200.00 and it feels like it will break through to again challenge resistance at $1,210.50 (100-day average) and $1,213.50 (50-day average).

Precious metals begin Q2 with gold in the driver’s seat as the tug of war continues between gold holding above $1,200.00 and running higher or falling below $1,150.00 and potentially testing $1,050.00. As we continue to look for the direction the market will take, U.S. economic data remains mixed which only adds to the choppy tone. The FOMC rate hike timetable remains uncertain which adds to the choppy market and the other major markets such as U.S. equities (choppy and volatile), crude oil (range trading between $40.00 and $50.00), and bond yields (range bound) are not providing the insight precious metals participants are looking for. Therefore, volume has been decreasing as many have taken a wait-and-see attitude. Through all of this the USD has rallied sharply in Q1 with the occasional reversal. I would keep a close eye on the USD as a move below 1.05 Euro (gold likely lower) or above 1.10 Euro (gold likely higher) will be the catalyst for our next move.

Hawkish comments by Fed members this week, intimating that a rate hike in June is still a possibility, have weighed on gold and company as the USD moved higher, but volume has been light and there was just enough physical demand at lower levels to offset the speculative selling as witnessed by silver holding $16.50, which is the current intra-day low. This morning has brought us another weak U.S. economic report and, as expected, our markets are now in rally mode. The ADP Employment Report showed that 189,000 new jobs were added last month by private employers, this figure badly missed the consensus expectation of 225,000. Perhaps more concerning was the fact that it was the lowest job creation figure since January of 2014. As I finish today’s commentary, gold is challenging $1,200.00 and it feels like it will break through to again challenge resistance at $1,210.50 (100-day average) and $1,213.50 (50-day average).

© Copyright 2018 ModernCoinMart (MCM). All Rights Reserved. We encourage the sharing and linking of our information but reproduction of our news and articles without express permission is prohibited. Instead of reproducing, please provide the link to the original article or use the share buttons provided.

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.

What are your thoughts? Gold Kicks Off Q2 in the Precious Metals Driver's Seat