Precious Metals Start Week Below Friday’s Close

Category: Market Reports
Author Name: Roy Friedman
Posted: 12-16-2014 09:24:00 AM
Overall volume has begun to contract as holiday season and year end approaches.

Precious metals concluded last week on a steady note, but its failure to find further buying on the back of a sharp sell-off in the U.S. stock market was disappointing. This morning finds all four precious metals trading well below Friday’s closing levels. As I mentioned last week, overall volume had begun to contract as the holiday season and year end approaches. This trend continued when trading resumed yesterday and continued in Europe and now in early stateside trading. The lack of volume may have been a signal for recent longs taking profits while further overnight drops in the crude oil market may have brought short sellers back in, especially in silver where $17.00 has failed to hold.

In the news, we have confirmation that Johnson Matthey has sold their gold and silver refining business in Salt Lake City and Brampton, Canada to Asahi Holding’s Inc. I will keep a close eye on this and report back regarding the production of their physical products which have been so important to the physical community for decades. This week brings the final FOMC meeting of the year with a statement scheduled for Wednesday afternoon which may keep pressure on prices over concern of a hawkish comment regarding rate hikes in 2015.

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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.

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