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Precious Metals on Defense this A.M.

Precious Metals on Defense this A.M.
Category: Market Reports
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Posted: 03-30-2015 08:55:00 AM

This morning finds all four precious metals on the defensive as a stronger USD, calmer tone in the Middle East, lower crude oil market and a big rally in U.S. equities weigh on our market.

Following a weak close on Friday, trading resumed yesterday with light physical demand through the Asia Pacific region, which may have sent some of the recent longs looking for the exit sign as prices moved lower. This morning finds all four precious metals on the defensive as a stronger USD, calmer tone in the Middle East, lower crude oil market and a big rally in U.S. equities weigh on our market. In another sign of a U.S. economy which may not be ready to support a rate hike, consumer spending in February missed the mark as household savings soared to a two-year high. While this data was certainly impacted by winter weather, I believe it further supports a rate hike no sooner than September.

As our market is now probing the lower end of the recent range with gold and silver failing to hold $1,200.00 and $17.00, we can look for support in gold at the 10-day average at $1,183.50. Silver may hold the key here as the 10-, 50- and 100-day averages are fall within 22 cents. Initial support should be seen at $16.76 which is the 50-day average, followed by $16.61 which is the 10-day average, and finally $16.54 which is the 100-day average. Physical demand should pick up sharply as we approach $16.50, but a break below that level will likely empower the short sellers.

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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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