Precious metals have traded quietly in narrow intra-day ranges this week, and while early in the U.S. trading day, early signs show this trend continuing today as all markets await a slew of economic data tomorrow and Friday.
Precious metals have traded quietly in narrow intra-day ranges this week, and while early in the U.S. trading day, early signs show this trend continuing today as all markets await a slew of economic data tomorrow and Friday. Physical demand from our corner of the market continues to be noticeably better than it was a week or two ago at higher spot prices, but certainly not robust enough to scare the shorts into covering positions.
Although gold quickly recovered after hitting a fresh multi-month low yesterday below $1,240.00, it continues to show no signs of being able to take out resistance between $1,250.00 and $1,255.00. Silver is beginning to feel like it is finding its legs and could be poised for a run at $19.20, which will assist gold to probe higher. The trend of a weaker USD and lower interest rates that I have often written about over the past month appears to have now come and gone without bringing the rally I had expected. This week has seen the yield on the 10-year bond rise back above 2.60 percent which could prove to be troubling for precious metals in the short term.
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