Precious metals are higher across the board this morning on light volume as geopolitical headlines continue to dictate price direction. Of note this morning, all four precious metals are once again trading above their 10, 50 and 100-day moving averages. While this is usually a bullish sign, it was not the case last week and with low volume or a lack of follow through, today or tomorrow could prove to be a 'sell signal.'
CFTC data for last week showed a sharp increase in speculative short positions in gold, while long positions were being liquidated. On the flip side, gold ETF holdings had a positive week and grew for the fourth straight week. Gold should remain in the leader’s chair this week where support should be expected in front of $1,300.00, while resistance can be expected at $1,320.00 and $1,340.00.
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.