Blog posts tagged with 'copper'

While December gold has avoided a fresh lower low in the early Thursday trade the path of least resistance remains down with outside market forces firmly anchored in the bear camp.

Unfortunately for the bull camp, the markets will face another critical US initial claims reading, with last week's reading posting the lowest weekly claims since early February!

At present, analyzing the gold market has become simplistic with unending strength in the dollar dominating the gold market...[MORE]

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Another new high in the dollar equals another new low in gold and ongoing but less significant pressure on silver.

In addition to the cascading pressure from the strengthening dollar, both gold and silver continue to see an exodus of investment from ETF holdings.

Yesterday gold ETF holdings declined by 66,197 ounces and silver holdings declined by 1.26 million ounces, leaving net sales this year in gold at 5.15 million ounces and net sales of silver this year at 28.2 million ounces...[MORE]

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With the dollar posting another higher high for the move and approaching the 106.00 level, currency pressure on gold and silver continues to increase.

However, yesterday gold and silver showed they could avoid wholesale liquidations, but further pressure today could result in a fresh wave of stop-loss selling.

While the higher for longer interest rate mantra remains on the back of most markets the markets will be presented with a series of US housing price and sales readings today which have been showing signs of softening that could temporarily undermine the dollar...[MORE]

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Fortunately for gold and silver, bearish influences from the dollar and treasuries abated at the end of last week. Still, unfortunately, adverse trend action in those markets has returned and is likely to keep gold and silver under liquidation watch.

In fact, this morning global markets were rife with concerns that interest rates were set to remain high for longer firming the dollar and undermining most physical commodities.

Therefore, further gold price retrenchment from treasury and dollar market action likely push December gold down to the September lows of $1,921 and potentially press silver back to first support of $23.36 in the December contract...[MORE]

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With the dollar bulls surviving and then thriving in the wake of a pause by the US #Fed and a downside breakout in US initial claims yesterday the uptrend in the dollar looks to expand.

Furthermore, given the bearish addition of a significant leap in US interest rates the path of least resistance in gold remains down.

However, the divergence between gold and silver makes us suspicious of the rally in silver which could result in a short sale opportunity if December silver reaches $24.25...[MORE]

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Surprisingly, the #gold market has remained lower this morning despite a softer-than-expected set of inflation readings from the UK. In our opinion, the data was not enough to discourage the Bank of England from hiking rates tomorrow, but the UK economy has created some doubt.

However, recently the gold market has been very sensitive to action in the #dollar, and with gold trading lower today with a setback in the dollar, the bull camp has stepped back.

Certainly, the aggressive recovery in the dollar yesterday has rattled some would-be buyers, especially if the US #Fed surprises and decides to hike today...[MORE]

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With the dollar showing signs of eroding the charts in both gold and silver continue to show signs of a slight revival.

Unfortunately for the bull camp investment interest in gold continues to wane with ETF holdings reduced for the 12th straight session, while silver investors bucked the trend with a purchase of 1.2 million ounces!

Apparently, the gold and silver trade is looking beyond the probable Bank of England rate hike tomorrow to the highly likely US Federal Reserve rate hike pause on Thursday...[MORE]

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While the dollar has not made a fresh high for the move since last Thursday (6-month high), the currency index remains near upside breakout territory, suggesting potential for a resumption of upside follow-through today.

With treasury yields also breaking out to the highest level since August 22nd overnight and sitting within one point of contract lows, renewed strength in the dollar should not be discounted.

In short, outside market forces continue to favor the bear camp in gold and silver with internal bullish fundamentals incapable of supporting prices or are simply completely absent...[MORE]

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