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Headlines Impacting Precious Metals

Headlines Impacting Precious Metals
Category: Market Reports
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Posted: 01-14-2015 01:29:00 PM
Roy Friedman explores the headlines that are impacting precious metals.

Plenty of headlines today all of which impact precious metals prices and highlight the volatility being seen in all markets. In no particular order here are a few:

1. Copper prices are following crude oil and collapsing on the back of the World Bank cutting its forecast for global growth in 2015 from 3.40 percent down to 3.00 percent. In addition, a tremendous amount of selling has been seen from the Asian market which may be related to the liquidation of long positions that were being financed or purchased on margin. Copper prices are often looked at as an indicator on the health of the economy. In this case it is certainly telling us an economic slowdown is on the horizon.

2. Investors continue to look at gold, and to a lesser degree silver, as a “safe haven” investment as crude oil continues to move lower and is now trading just above $45.00 on the benchmark W.T.I. contract, with many commentators talking about prices falling into the $30.00s.

3. U.S. equities are leading a global sell-off. Despite yesterday’s sharp early gains, the market turned negative and closed down on the day. This morning brings further weakness with the Dow Jones Average currently down over 200 points in early trading.

4. Weak U.S. and global economic data continued this morning as U.S. retail sales missed the target by posting the largest decline in 11 months.

5. This morning finds U.S. bonds continuing to march higher as the 10-year bond yield trades down to 1.83 percent with bond traders likely thinking a rate hike in 2015 may not happen at all this year.

This morning, gold is trading up, but the rest of the complex is lower on the back of copper and economic concerns. A break above $1,250.00 sets the stage for a run into the $1,280.00’s while a dip below $1,225.00 will likely bring us a test of support at $1,200.00.

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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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