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Precious Metals Mixed This Morning

Precious Metals Mixed This Morning
Category: Market Reports
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Posted: 02-02-2015 03:34:00 PM
Results of Thursday and Friday are showing on this Monday morning.

Following the big sell-off on Thursday and respectable recovery on Friday, precious metals were weighed down in overnight trading as China released their weakest PMI data in over two years. This morning finds our market mixed with gold and platinum lower while silver and palladium trade higher versus their closes on Friday. After the big moves on Thursday and Friday, with silver falling over 6 percent on Thursday, the gold silver ratio has moved back up and approaches 74.00. Last week’s FOMC statement was a bit more hawkish than expected. The phrase that I think unnerved the markets was their belief that the economy was expanding “at a solid pace” as an interest rate hike at mid-year again seems like a possibility.

While the possibility of higher rates is again debated, perhaps we need to look no further than our treasury market where the yield on the 10-year bond has fallen below 1.70 percent. Crude oil which has been front and center recently staged a rally at the end of last week and is now closer to breaking above $50.00 per barrel than it was to breaking below $40.00 as many commentators had called for. The news here, like gold mines when prices fall, is that many oil drillers have taken rigs offline as the glut of oil on the market likely makes it unproductive to drill until the price recovers further. Keep a close eye on gold during the first half of this week as gold struggles to trade back above the 10-day moving average which currently stands at $1,285.75. A failure to move back above this level could signal a test of the 50-day average is on the horizon which currently sits down at $1,222.50.

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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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