The precious metals markets remain strong this morning and still appears to be in bullish territory

The precious metals markets remain strong this morning and still appears to be in bullish territory. It is most likely we will continue to see attempts at going higher in gold towards the next resistance of 1308. Supporting the market is foremost the Euro’ identity crisis. Once thought to be a safe haven currency, after the Swiss National Bank debacle of last week and the impending Greek elections that are expected to further undermine its presence in global portfolios, it’s not clear what is next.  Additionally, quantitative  easing is expected to be the tool most likely to be implemented by the ECB which will continue to undermine its position. The news to watch this week will be, first the overnight report out of China on their GDP and more importantly the ECB’s policy statement on Thursday. Today is Martin Luther King Day in the USA. Banks, Government offices and the stock market is closed. Don’t expect much activity either way today.

The start of the first full week of 2015 is here

The start of the first full week of 2015 is here. This Monday is ringing it in with a bang as the Euro drops below $1.20 to as low as $1.1876. The driver against the Euro is in no small way concerns that the extreme left leaning party in Greece may take control in elections later this month. If they do the belief is twofold that Greece may leave the EU and that they may end austerity measures and not honor previous agreements. On this news funds have also been driven into the gold market driving it back up to the 1200 price level. Precious metals are all green across the board as investment money seeks alternative to Euro based assets. Additionally, US Car sales reports out this morning for the month of December rose topping off a strong year. This will give continued fundamental support to the Platinum group metals. It would appear that we can expect the precious metals to hold current price levels or go higher as the bears for now are in hiding due to the “Grexit” (Greek Exit from EU) threat.