Precious metals, led by gold, had a very active Veteran’s Day trading session yesterday, as rumored buying from China brought about an afternoon rally that saw gold top out at $1,172.00. Physical demand continues to remain brisk this week as physical buyers continue to trade actively. Trading in Asia last night saw a tug of war between aggressive physical buyers and “paper sellers” who are reacting to the continued strength of the USD against the JPY.
While news out of Ukraine is no longer a front page headline and impacting our market, that may soon be changing as their Defense Minister is warning of a likelihood of escalating hostilities. A big sell-off in Ukrainian debt instruments may be a hint of this again being a front page headline as their interest rates are soaring higher. In the short term, gold remains in the driver’s seat where support can be expected from the mid-$1,150.00s through the mid-$1,140.00s, while resistance can be expected from the mid-$1,170.00s through the low $1,180.00s. The U.S. Mint will resume selling 2014 Silver Eagles on Monday, but coins will be offered to the Authorized Purchasers per the Mints allocation process. As of this writing Dillon Gage has “live” coins, so please call our trading desk ASAP to lock them in.
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.