The
US dollar is dictating market gyrations in the precious metals at the
moment. This morning’s very good GDP (gross domestic product) coming in a
4% has strengthened demand for all US Investments. When the
announcement came out the precious
metals got whacked and went lower but it was short lived as very few
people want to be short gold against the current geopolitical backdrop.
Does gold have significant downside? If there is a peace agreement in
the Mideast and a solution to the Russia/Ukraine
conflict yes, otherwise we can expect buys on any big dips. However the
rest of the group Silver, Platinum and Palladium all benefit in
fundamental consumer demand on a positive improving global economy.
However Japan reported a weaker GDP and Spain also had
a weaker than expected figure, the global economy is not out of the
woods quite yet. More importantly though will be
this afternoon’s Federal Reserve rate decision and policy statement to be released at 2 pm.
Gold has support at 1287/61, silver 20.25/03, platinum 1472/61 with
resistance at 1488/91. Palladium has support 875/71 and resistance at
885/88.
Next Big US News Day; Friday- Unemployment rate, Non-Farm Payrolls, ISM Manufacturing
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