Home InfoVault Market Reports Precious Metals Bounce Back This Morning - Market Report For 10-06-2014 - ModernCoinMart (MCM)

Precious Metals Bounce Back this Morning - Market Report for 10-06-2014 - ModernCoinMart (MCM)

Precious Metals Bounce Back this Morning - Market Report for 10-06-2014 - ModernCoinMart (MCM)
Category: Market Reports
Author Name:
Posted: 10-06-2014 12:37:00 PM

Precious metals dropped sharply across the board when trading resumed yesterday via electronic trading.

Precious metals dropped sharply across the board when trading resumed yesterday via electronic trading. Gold traded down to support at $1,183.00, while silver matched Friday’s low at $16.65. Platinum fell to $1,186.50 and for a brief time was trading flat to gold, while palladium recorded a low of $735.00. This morning finds all four metals have done a reversal and are trading above their Friday settlement prices as good physical demand and short covering were seen in Europe and continue to be seen in early U.S. trading.

The most recent CFTC data showed that long positions have continued to be liquidated while short positions continue to increase, which raises the likelihood of a short covering rally. On the technical side, gold is likely to face resistance at $1,200.00, but a break above sets the stage for a test of the 10-day moving average at $1,212.00, which should prove to be very interesting as a break above this level should get the shorts very nervous. Silver, which has fallen more than gold as witnessed by the gold / silver ratio breaking above 70, could get the shorts concerned with a settlement above $17.00, but at the very least silver will have to break above the 10-day average currently at $17.35 before any sizable short holders begin to think about covering their position.

© 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? Precious Metals Bounce Back this Morning - Market Report for 10-06-2014 - ModernCoinMart (MCM)