Precious metals have consolidated and are trying to probe higher since the recent lows that were made on Sunday night / Monday morning, as the USD has backed off which has likely caused some of the shorts to begin covering while physical demand, especially in silver, remains very strong.
Precious metals dropped sharply across the board when trading resumed yesterday via electronic trading.
The bears continue to be in charge as precious metals are looking at sharp losses this morning as the USD continues to strengthen.
Precious metals continue to shake off all headlines that I would expect to support gold and the precious metals complex
Precious metals failed to hold the move higher yesterday despite increasing tension in the Middle East and economic woes in Europe that appear as though they will be with us for quite a while.
Silver prices continued falling overnight following the big sell-off on Friday.
Precious metals and most commodities continue to be under pressure this morning as trading heads for the finish line in a week that has seen sharp losses in the precious metals complex on the back of USD strength and rising interest rates.
Keep a close eye on platinum and palladium for the balance of the week as they have dropped sharply, but are now approaching levels where strong physical demand has been seen.
The European Central Bank took a very aggressive stance yesterday as it looks to turn the tide on a weakening economic slump throughout the Eurozone. Yesterday’s stimulus announcement of an asset backed bond purchasing program along with a lowering of their key deposit and refinance interest rates was more than most economists had expected.
The precious metal market begins the new month on its heels as all four metals are looking at sharp losses in early U.S. trading. A lack of physical or paper buying overnight in Asia was a precursor of what was to come as short sellers continue to feel empowered on the back of the rising USD.