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Precious Metals Under Pressure This A.M.

Precious Metals Under Pressure This A.M.
Category: Market Reports
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Posted: 05-09-2016 09:06:00 AM

Greek lawmakers have agreed to a pension and tax reform plan that will require more stimulus from the Eurozone members.

Markets under pressure this morning after gloom and doom Chinese data overnight. Also hitting the wires is news that Greek lawmakers have agreed to a pension and tax reform plan that will require more stimulus from the Eurozone members.

This news has disappointed the gold market after witnessing open interest up 21,848 contracts on the CME Friday, with hopes that gold would test the $1,300 dollar level. Chinese import data disappoints the base metal markets which in turn also puts platinum and palladium in a downward spiral. All eyes now on the Chinese economy slowing and that’s not good for the precious metals or base metal market.

Some Wall Street traders indicated that the news this morning has all the nervous longs in all four metals selling out of their positions, taking whatever profits that are left on the table and flattening out their positions. I expect tomorrow the numbers will reflect a large redemption in the ETF and CME open interest figures.

Technical levels of support in Platinum and Palladium have been violated so we just have to wait and see how the market reacts after the dust clears. For gold, looking at the charts the next level of support will be the $1,252 level in the June contract and $ 16.68 in the July contract. I‘ll have to wait till tomorrow to see how much damage was done to our so called “bull market.”

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About The Author

Walter Pehowich Author Name: Walter Pehowich
This editorial has been prepared by 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.

What are your thoughts? Precious Metals Under Pressure This A.M.