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Home InfoVault Market Reports USD Rally Pressures Precious Metals - Market Report For 9/5/2014 - ModernCoinMart (MCM)

USD Rally Pressures Precious Metals - Market Report for 9/5/2014 - ModernCoinMart (MCM)

Category: Market Reports
Author Name: Roy Friedman
Posted: 09-05-2014 11:30:00 AM

The European Central Bank took a very aggressive stance yesterday as it looks to turn the tide on a weakening economic slump throughout the Eurozone. Yesterday’s stimulus announcement of an asset backed bond purchasing program along with a lowering of their key deposit and refinance interest rates was more than most economists had expected. The result as discussed in an earlier commentary has been a sharp rally in the USD which is now at multi year highs as gauged by the USD Index and it is certainly adding pressure to precious metals and most commodities. The Euro currency has fallen over 2 cents this week and currently trades below 1.30 at 1.294. Along with this, bond yields are plummeting throughout the Eurozone which further enhances the appeal of the USD. As would be expected, precious metals are on the defensive but quite surprisingly after making a new recent low overnight at $1,258.00 gold has rebounded and is actually trading in positive territory at 1,268.00 supported by good early physical demand. Silver continues to hold $19.00 and like gold is seeing good physical demand this morning as it has just turned positive on the day at $19.16. With gold, silver and platinum all trading below key moving averages it appears the USD strength will keep us probing lower unless another geo-political event changes our course. The good news for our corner of the market is likely and hopefully an increase in physical demand with lower price points. Palladium on the other hand continues to be the lone wolf as it has recovered much of the losses seen earlier in the week and currently trades above key moving averages. Good luck and have a good weekend, Roy

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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.