Tuesday, September 23, 2014
An air attack on ISIS in Syria by allied forces caused gold to spike on safe haven demand. Yet it was short lived as the world is now used to this constant geopolitical angst and is more concerned with economic news. Fed Governor Kocherlakota intimated that inflation will remain low and that they will be cautious about raising rates. This tone is not really a strong signal in either direction and will still keep gold bugs at bay. Positive news out of China as their Manufacturing Index beat estimates at 50.50 gives an overall positive signal for the continued improvement of the world economies. The recent upward move has not changed overall trajectory as yet and only the PGMs will find some support on recent news, due to their demand for catalyst in the exhaust systems, from the automotive sector which is doing well in all markets.
Thursday, September 18, 2014
Yesterday’s Federal Reserve statement was no surprise but staying on the same path still means lower for precious metals.
Yesterday’s Federal Reserve statement was no surprise but staying on the same path still means lower for precious metals. The metal leading the way on this downward direction is still the gold which is under the financial pressure of the strengthening US dollar. Technical indicators though are signaling an oversold condition in silver and gold will soon be there. This may cause a turn in the current downward trend. Additionally a NO vote on the Scottish referendum may have a positive effect on the British pound maybe taking some wind out of the US dollar sails. Housing Starts report this morning was weaker than expected but not weak enough to change the view on the economy.
Tuesday, September 9, 2014
Little to report this morning as it was no surprise to most people that watch the market that gold succumbed to downward pressure yesterday
Little to report this morning as it was no surprise to most people that watch the market that gold succumbed to downward pressure yesterday and the rest of the precious metals group followed. Even palladium has suffered from the recent short side selling. But more telltale signs may be the abandonment of investors from the gold market as seen in Bloomberg ETF report with a decline in the past month of 18.5 tons. The market will most likely remain under pressure as the US Dollar surges in strength on the recent positive economic outlook and the belief that the US economy will continue to improve. As mentioned yesterday the Retail Sales number on Friday will be an important indicator of things to come. Tomorrow’s release from China about their Consumer Price Index should be watched as well.
Thursday, September 4, 2014
The precious metals group is all in the green across the board this morning. Doubts of any peace settlement brokered by Russia for the Ukraine has grown and the market has taken that into account, more so though for the price palladium. However the bigger influence on prices overall are the ECB rate decision down to .05% from .15% and the announcement of their own version of QE which is to begin in October. The ADP Payroll report was lower than expected at 204k. The ISM Manufacturing number for August was better than expected compensating any negative sentiment for the US dollar after the ADP report. However we can expect to see a quiet day for precious metals ahead of the Unemployment Data for the US which will be released tomorrow morning.