Home InfoVault Market Reports Our Corner Of The Market Has Come To Life - Market Report For 07/16/2014

Our Corner Of The Market Has Come To Life - Market Report for 07/16/2014

Our Corner Of The Market Has Come To Life - Market Report for 07/16/2014
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Posted: 07-16-2014 08:49:00 AM

The sharp drop in prices this week has been met with a surge in physical demand as our corner of the market has come to life.

The sharp drop in prices this week has been met with a surge in physical demand as our corner of the market has come to life. Unfortunately, the sharp sell-off is likely another thorn in the side of speculators who trade from the long side, as many were unlikely to exit the position fast enough to have locked in a profit. Overnight trading in Asia was quiet and, like Sunday night, may have been the catalyst for the sellers to step up until support was found in gold in the low $1,290.00s. In early trading this morning, gold is the sole precious metal higher on the day as it is trading on either side of $1,300.00.

Fed Chair Yellen gave a difficult to follow / confusing testimony to the Senate Banking Committee yesterday with several comments that moved the markets. In our case mostly lower, but bonds and equities went back and forth several times. Precious metals focused on comments that indicated her belief that the Fed is on schedule to begin raising rates in the second half of 2015, which should strengthen the USD and pressure gold. Chair Yellen begins the second day of testimony on the “hill” shortly, so all markets are likely to again be impacted.

Back to the sell-off for a last comment. Physical demand is quite good again this morning and following the hold of the 50-day moving average at $1,292.50, gold is moving higher and is now trading at $1,304.00. A settlement above the 100-day gold average at $1,303.75 could see us testing the 10-day average this week which currently stands at $1,318.00.

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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.

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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