I will try to make this short and sweet to close out the week on this Friday, April 19, 2013. Let’s take a look at some of the day’s events.
To start with, silver closed up one cent to end the week at $23.29 per ounce. This is a one cent gain and a gain of 0.04%. (Take a look at Thursday’s post if you would like to make a comparison.)
At the top of the trading day, the commodity sold for $23.96 per ounce. At the bottom of the trading range, the commodity sold for $22.83 per ounce. There was a lot of movement in the market today, and unfortunately it ended up right back where it started.
Now for the weekly numbers…
Last Friday, silver closed at $25.85 per ounce. Since we just learned that the commodity closed at $23.29 per ounce this week, you can see that silver had a rough go of it. It lost $2.56 per ounce in total this week. (Take a look at last Friday’s post if you’d like to make a comparison.)
Let’s now take a look at some news for the week and see where the market is heading next week…
On Friday, gold closed at $1395.60 per ounce in New York. But for the week in total, the commodity lost 7%. Silver on the other hand lost 12% of its value this week.
Let’s now take a look at some of the things said by market analysts this week in regards to precious metals…
Overall, many of the market participants had a change in attitude toward the precious metals market. On the side of physical demand, there has actually been a major rush to buy. Many of the Asian countries have been purchasing gold at an alarming rate. The US mint has also let us know that there have been strong sales for their gold coins this week.
“After a punishing selloff, gold appears to be in the process of bottoming,” Terry Hanson said. He is the president of Dillon Gage Metals. “Demand for physical gold and jewelry picked up as prices drop. Additionally, many bargain hunters are buying on this dip causing a shortage in the supplies of physical metals.”
Hamlin also mentions that consumers in Asia are particularly enjoying the low prices. They see it as a good time to buy gold jewelry and other minted investment products.
We learned from the president of Phoenix Futures and Options, Kevin Grady, that there has been “a tremendous amount of shorting activity seen.”
He also mentions that the $1425 area, which was around the high on Friday night, is looked upon by bearish traders as the place to establish new shorts. Prices could potentially drift higher next week he also said. But he believes that until gold prices move over $1535 an ounce, the gold trend is still considered down. That is an area right above the level of support that triggered the tremendous amount of selling in gold during the week.
So that’s all we have for today. Thanks for checking in with us during the week. We will be back on Monday with any news and events that you need to learn about.
Until next time…
It was a relatively flat trading day in the world of precious metals on this Thursday, April 18, 2013. But just like every other day, it did have its moments. I’d like to share those with you right now.
To begin this post, I’d like to mention that silver closed at $23.29 per ounce. This is a total loss of two cents per ounce; hence the need to say that it was a relatively flat trading day. (Take a look at Wednesday’s post if you’d like to make a comparison.)
At the highest point during the trading day, the commodity sold for $23.79 per ounce. At the lowest point during trading, the commodity sold for $22.81 per ounce. That is about a one dollar gap, so there was definitely trading taking place, but overall the price stayed relatively close to even.
Let’s take a look at the news and other events that took place during the day…
Gold futures actually saw moderate gains in the US on Thursday. There was strong selling pressure during Asian trading hours, but our favorite shiny metal made a good recovery.
Short covering and bargain hunting were the big winners for the day. This is expected following the extreme downside price action we’ve seen over the recent days and weeks.
We learned that Blackrock did some bargain hunting in overnight trading and purchased a nice amount of gold during that time.
Weaker US economic data also provided modest support for precious metals on Thursday. The Philadelphia Fed business survey and leading economic indicators were both lower than expected. This tells us that the Federal Reserve should not back off its monetary easing policies in the near future.
During Thursday’s trading, crude oil and gold both saw strong selling pressure in the Asian markets. But they made a strong recovery during trading hours in Europe. There was a forecast for lower world economic growth from the international Monetary Fund this week, which reiterates that major world economies are still struggling and seeing very slow growth.
Starting in Washington DC today, the Group of 20 meeting began. The market is going to pay close attention to any of the proclamations coming out of this meeting in regards to foreign exchange rate, economic policies and financial policies as well.
The US dollar index was trading lower on Thursday. This is mainly due to a corrective pullback due to Wednesday’s phenomenal gains. The greenback bulls have the upside near term technical momentum in their favor.
We also saw higher Nymex crude oil futures prices on Thursday. This is mainly due to short covering once the commodity hit its 9 ½ month low in Asian trading.
That’s all we have for you today. Don’t forget to check in with us again tomorrow. We will tell you the daily price fluctuations, any news that takes place, the week in review and where we believe the market is going to trend next week.
Thanks for stopping by. We always appreciate it.
Until next time…
It was a so so day in the precious metals market on this Wednesday, April 17, 2013. Stick around and we will fill you in on all of the news.
To start things off, I’d like to mention that silver closed at $23.35 an ounce. This is a one cent gain for the day in total. (Take a look at Tuesday’s post if you’d like to make a comparison.)
At the height of trading, the commodity sold for $23.81 per ounce. At the lowest point during the trading day, the commodity sold for $22.80 per ounce. So there’s still decent activity in the marketplace, although it doesn’t necessarily appear to be positive.
Let’s now take a quick look at the news…
On Wednesday, gold futures ended up moderately lower in the United States. Part of the major pressure on this commodity was due to the bearish sentiment of outside market forces. In particular, the US dollar index was much higher and crude oil futures were much lower.
The US Federal Reserve released their beige book on Wednesday afternoon. It did not offer any surprises to the marketplace and overall it had very little impact on precious metals in general. In the beige book we learned that the US economy is growing at a moderate pace, and residential construction has picked up.
Overall, the world marketplace seems to have calmed down, and it is focusing on individual market supply and demand fundamentals. It no longer seems to be focusing on the world geopolitical scene. Although a US senator was delivered poison in the mail, and President Barack Obama possibly had the same thing happen to him. This definitely caught the interest of traders and investors on Wednesday.
On Wednesday, we read reports that there is a strong demand in Asia for physical gold. This is especially prevalent in India. We learned from the US Mint that gold coin sales have recently soared. We also recently learned that the “paper gold” holders (futures traders and ETF traders) are the ones doing the major selling. The owners of physical gold have actually been buying quite a bit due to the big drop in price.
The World Gold Council told us on Wednesday that gold’s overall picture has not changed. The fundamentals are still the same even though the prices have been falling as of late.
Quite often extreme moves happen in this marketplace. This is nothing new, although the recent selloff doesn’t make much sense and it’s actually a bit extraordinary. But this is nothing to worry about, since all markets go through extreme moves and price swings. The attitude of traders and investors toward the precious metal market has not changed at all at this point.
The US dollar index traded much higher on Wednesday. The greenback bulls still hold the overall technical advantage. Nymex crude oil futures traded a lot lower on Wednesday. They are currently hovering around their 9 ½ month lows.
That’s it for today’s news and events. Don’t forget to check back in tomorrow. We will fill you in on the news, the price changes and everything else that we learn during the day.
Until next time…
It looks like the precious metals bears finally took the day off today on this Tuesday, April 16, 2013. The market bounced back a little after yesterday’s devastating losses. We will cover the day’s price changes and news events right now.
To start things off, silver rose $.65 per ounce to close at $23.34 on Tuesday. This is a 2.86% gain in total value. (Take a look at Monday’s post if you’d like to make a comparison.)
At the top of the trading day, the commodity sold for $24.15 per ounce. At the bottom of trading, the commodity sold for $22.63 per ounce. Again, there was a lot of action in the market today and thankfully it was all positive.
Let’s now dive into the news…
Gold saw solid gains as well on Tuesday. In overnight trading, it dropped as low as $1321.50 per ounce, but it bounced back and rose $21.50 per ounce today to close at $1382.60.
The majority of today’s gains come because of bargain hunting in the marketplace. Precious metals broke through their two-year lows yesterday, and this has created some phenomenal buying opportunities for those who see the value in these commodities.
Emotions were not running as hot on Tuesday. Precious metals rebounded off of their two-year lows. Unfortunately, there still appears to be some anxiety in the marketplace. Traders and investors will look forward to see how the rest of the week plays out.
In overnight reporting, we learned that physical demand for gold has increased all across Asia due to the recent drop in price. In China and India, many of the major gold consumers saw their citizens buying up gold bars and gold jewelry now that the prices are so low. There were actually retail stores in Asia that ran out of gold products to sell. This widespread jump in demand is part of the reason why the bleeding stopped in the precious metals market today.
The US dollar index traded much lower on Tuesday. This is a positive for precious metals, and I’m sure it didn’t hurt since the commodity bounced back a bit today.
Nymex crude oil futures were about even today. But, the commodity reached an overnight low in trading that it hasn’t seen in 9 ½ months.
Both the US dollar index and Nymex crude oil futures have an effect on precious metals. When the greenback goes down in value, this is normally a positive sign for precious metals. When crude oil goes up in value, this is also a positive sign for precious metals. And when they do the opposite, this is negative for everybody’s favorite shiny objects.
That’s it for today’s news and events. It’s still important to watch the markets closely at this time. Investors are still very uncertain, so we will have to watch and see how things play out over the coming weeks.
Until next time…
There’s panic in the marketplace. That’s all I can say about precious metals at this point. A lot of the selling is fear-based and nothing more. You can look at this as a good thing or a bad thing. It’s either the end of the world, or an incredible buying opportunity. I will let you decide.
To begin, the closing price of silver was $22.69 per ounce in New York. This is a total loss of $3.16, or 12.22%. It’s certainly a big drop in value as I’m sure you can see. (Take a look at last Friday’s post if you would like to make a comparison.)
At the height of trading, the commodity sold for $24.53 per ounce. This is already a serious loss, so the drop in value already began in premarket trading.
At the lowest point during the trading day, the commodity sold for $22.52 per ounce. That is relatively close to the day’s closing price, so as you can see there is much fear in the market at this time.
Let’s dig into the day’s events and we’ll fill you in on the news…
As I already mentioned, the price of silver and gold plummeted because of massive panic and serious selling pressure in the marketplace on Monday. Both commodities actually surpassed their two-year lows.
This selling fear has permeated the entire raw commodity sector. At one point, we saw a $175 price drop in gold, and crude oil futures also saw heavy losses on this day. All in all, it was an abysmal day in the market for precious metals traders and any other traders in the raw commodity sector.
Veteran investors and other market watchers understand that when panic begins, the market is going to move at a rapid pace. It can get really scary for those losing money, and they make decisions based out of fear instead of the fundamentals. Logic goes out the window and big money changes hands at this time.
Unfortunately, there are always going to be winners and losers, and anyone selling precious metals today is probably a loser. Buyers on the other hand are set to make a nice score once the fear leaves the market and these commodities begin to turn around.
Many analysts believe that there is a major shift in the sentiment for gold. They are certainly right, but they are only correct on a short-term basis. There’s no question that near-term sentiment has turned against precious metals. But there’s one thing you need to remember about investing…
Investor sentiment can change in the blink of an eye. There’s no question that gold will come back better than ever at some point in the future. The same goes for silver and other precious metals. It’s a safe haven asset, and history has proven that precious metals are the best commodity you own.
There is no one specific reason why the panic selling has begun in the precious metals market. Some people are worried about the demand for physical gold in China and India. Others are blaming the turnaround in the equity markets, because previously long positions are exiting the market so they can invest in stocks.
There are financial bailouts, banks are failing and slower growth has also been on the minds of many investors. These are typically good things for a safe haven investment such as precious metals, but they don’t seem to have helped recently as I’m sure you can tell with such a heavy drop in the market like we’ve seen today.
Anyway, the US dollar index traded at about steady on Monday. Nymex crude oil futures dropped heavily, and they even had their four-month low at one point during the trading session.
That’s it for today’s market wrap up. Let’s see what’s in store for tomorrow. Remember, there is a lot of fear in the market and the heavy selling may not even be over at this point.
I hope to have better news when I check back in tomorrow.
Until next time…
It was another rough day (and week) for precious metals to close out the week ending on Friday, April 12, 2013.
I will now provide some information about the day’s events, a brief comparison of this week’s closing price with last week’s and a brief guesstimate about where the market will head next week.
To start, we’ll begin with silver. The commodity closed at $25.85 per ounce in New York on this day. That is a loss of $1.81, or 6.54%. (Take a look at Thursday’s post if you would like to make a comparison.)
At the best point for this commodity during the trading day, it’s sold at $27.79 per ounce. And at its lowest point, the commodity traded for $25.72 per ounce. There was a lot of activity in the market, and it was unfortunately negative activity for the precious metal.
Let’s take a quick look at a comparison with last week’s closing cost…
Last Friday, April 5, 2013, the commodity closed at $27.35 per ounce. Again, today the commodity closed at $25.85 per ounce. This is a total loss of $1.50 for the whole week. (Take a look at the week in review from last Friday if you’d like to make a comparison.)
Now we’ll move on to other news…
Gold also struggled throughout the trading day. It is the first time in nearly 2 years that the commodity dropped below the $1500 per ounce level. It closed at $1501.40 per ounce today, so it didn’t stay below that level. But it’s still not the greatest sign for the once thriving yellow metal.
Gold prices are actually down 11% so far in 2013. At the time of this writing, the commodity is down 22% from its all-time high. In September 2011, the commodity closed at $1923.70. So we’ve seen a downtrend in the marketplace for over a year and a half now.
Sean Lusk, an Ironbeam precious metals analyst, had this to say about today’s selloff, “The market uncovered a treasure trove of sell stops under $1525. We just saw a cleansing of positions here.”
Mr. Lusk also mentions that there’s been negative sentiment building in the precious metals marketplace for many months now. This is mainly due to the equity markets breaking record highs. It’s also partly happening because investment banks are lowering their forecast for precious metals.
We mentioned earlier in the week that Goldman Sachs downgraded their gold outlook, and switched it from a buy to a short, or sell position.
At this point, you should pay close attention to the market. Since precious metals are selling at such a bargain, I’d think buying the physical commodity should pick up over the weeks to come.
That’s it for this week’s market wrap up. It’s been another tough week for precious metals. It doesn’t look like the bleeding is going to stop anytime soon.
Thanks for sticking with us all week long. We appreciate it. Don’t forget to check back on Monday. We’ll begin our coverage all over again.
Until next time…
The precious metals market bounced back a bit on this Thursday, April 11, 2013. We will discuss price movements and the news, along with the day’s biggest events.
As we begin, I’d like to first start off telling you that silver closed at $27.66 per ounce on this day. That is a one cent gain, or 0.04%. (Take a look at Wednesday’s post so you can make a comparison.)
At the highest point during the trading day, the commodity rose to $27.97 per ounce. At the weakest point during trading, the commodity fell to $27.34 per ounce. That’s a relatively small gap in trading, and I guess it wasn’t a very active day in the market overall.
Let’s now take a look at the news and other events from the trading day…
Gold prices closed modestly higher on Thursday in the US trading session. This was mostly due to short covering plus an upside technical bounce immediately following the losses from Wednesday. There was also some fresh buying interest in the market due to the weakening US dollar index.
All in all, the bears are still in control of the overall technical momentum and near-term advantage in the precious metals market.
We also saw the weekly US jobless claims report released this morning. The data had very little affect on the precious metals market, and ultimately there was a bigger decline in claims than otherwise expected.
Charles Plosser, the Philadelphia Federal Reserve Bank President, mentioned in a speech he gave in Tokyo said that the Fed is going to begin winding down its bond buying program (also known as quantitative easing) and completely finish with this measure by the end of this year.
The president is not an actual voting member of the Federal Open Market Committee. When we saw the FOMC minutes on Wednesday, it said that the officials were still uncertain and currently debating when to close the bond buying program down for good. The whole situation has the commodity market bulls very rattled.
In other news, the Japanese stock market hit a four-year high this Thursday. This is in part due to the aggressive monetary easing put forth by the Bank of Japan. Also, the US dollar hit a four-year high versus the yen overnight as the Bank of Japan works on devaluing its currency. The European Central Bank also hinted that they may lower interest rates even further in an effort to devalue its currency.
The US dollar index was a lot lower on Thursday, and it even hit a three-week low. The overall technical advantage is still in favor of the greenback bulls, although their stranglehold is beginning to fade.
In the meantime, Nymex crude oil futures were also lower on Thursday. In general, this is a negative sign for precious metals.
That’s everything we wanted to share with you today. Don’t forget to check back tomorrow for the week in review, the day’s events and next week’s outlook. As always, thanks for checking in.
Until next time…
Unfortunately, the precious metals market can no longer seem to find two good days in a row. The market got whacked again, and I’d like to fill you in on the details as well as the news.
To start off in my typical fashion, I’d like to share the price of silver and tell you where it closed today. The closing price was $27.65 per ounce. This is a 1.18% loss, or a $.33 loss, depending on how you look at it. (Take a look at Tuesday’s post if you would like to make a comparison.)
At the height of trading during the day, the commodity reached $28.14 per ounce. At the lowest point during the day’s trading, the commodity sold for $27.43 per ounce. So there was more action in today’s market than we saw earlier in the week.
Let’s now take a look at some of the day’s events in the news…
Gold prices dropped in the US today and they ended their session sharply lower. There was an unexpected early release to the US Federal Reserve’s FOMC minutes, and traders unfortunately read this as bearish in regards to the precious metals market.
The US stock market indexes rose to record heights today, and this took more money out of other investment choices, and in particular it took money away from precious metals such as gold and silver.
There was also some chart related selling in the market, and this negatively affected the precious metals prices. The bears are still in full control of the near-term technical advantage.
Getting back to the news…
The FOMC released their minutes early on Wednesday morning, instead of in the afternoon which is the norm. They say it was released early because of a glitch in the Fed. As investors digested the information provided by the FOMC, they began to look at it as a bearish slant for the raw commodity sector.
The Dow Jones industrial average and the S&P 500 stock index both reached new record highs on Wednesday. This pulled money away from other asset classes and brought it back into the stock market. This has been going on for several weeks, as records are being broken on a regular basis as of late.
It was also reported that the government in Cyprus plans to sell $500 million worth of their gold reserves. They will sell to finance the European Union bailout that recently came into play. $500 million worth of gold is the equivalent of 10 metric tons, we learned in reports today. This possibly also had a negative impact on the market today.
Looking at other news, we see that Goldman Sachs has decided to lower their forecast for the price of gold in 2013. They changed their three-month forecast to $1530 per ounce. It was previously forecasted at $1615 per ounce. It gets much worse…
There six-month forecast is now $1490 per ounce, and the 12 month forecast is $1390 per ounce. They also see gold and precious metals as a selling opportunity at this time.
Here’s what I would like to tell you now…
Don’t read too much into this forecast. These analysts often get it wrong. They are usually behind the eight ball and well off the mark. They have the luxury of adjusting their forecast whenever they want, and they do not need to get it right. So that’s all I wanted to say about that.
The US dollar index traded higher on Wednesday. The overall technical advantage is being controlled by the greenback bulls.
Nymex crude oil futures were also slightly higher on Wednesday. That is a positive sign for precious metals.
That’s it for today’s news. There are many things to think about, and the market is unfortunately turning against precious metals investors.
We’ll have more for you tomorrow. Stick with us and we’ll tell it like it is. Thanks for stopping by.
Until next time…
Overall, precious metals had a relatively good day in the marketplace on Tuesday, April 9, 2013. There’s plenty of news and information as to what happened during the trading day. I’d like to share that with you as well as some other updates.
To start off, I’d like to mention that silver closed at $27.98 per ounce. This is a $.68 gain in value, or 2.49% if you prefer to calculate the rise in value that way. (Take a look at Monday’s post if you would like to make a comparison.)
At the highest point during the trading day, the commodity sold for $28.20 per ounce. On the other side of the spectrum, the commodity traded for $27.16 per ounce. There was a lot of activity in the marketplace as I’m sure you can tell by the relatively wide gap in trading.
Let’s take a look at the news and other things that went on during Tuesday’s trading…
There was a rally in gold prices in the US during the Tuesday trading session. Mainly, the market was boosted on bargain hunting and short covering. The commodity saw recent losses last week and even hit a 10 month low.
Another factor in the rise in precious metal prices was Tuesday’s weaker US dollar. I’ll share more about that later on.
At the time of this writing, both silver and gold have gained a small amount of upside technical momentum due to the day’s rally. But that doesn’t mean that things are changing in their favor. The bulls have a lot more work to do in order to break the current technical funk.
The Federal Reserve Open Market Committee will release the minutes of the last meeting on Wednesday. This should be the next major development for the precious metals market.
In overnight news, we learned that China’s consumer price inflation was lower than expected, and it came in at 2.1% annual rate in March versus the expected result of 2.4%. This is a very bullish sign for the raw commodity sector as a whole, and specifically precious metals since that’s the topic of focus.
We also saw weak US jobs data last week. This told us that the Federal Reserve is not going to ease up on their monetary policy in the near future. Ultimately, the devaluation of major currencies is a bullish sign for precious metals, and especially silver and gold.
Overnight reports tell us that the demand for physical gold is currently coming out of Asia. They are buying precious metals because of the perceived bargain basement prices.
The US dollar index was much lower on Tuesday. This was mainly due to profit taking. The greenback bulls have disappeared; even though they still currently hold the overall technical advantage.
Nymex crude oil futures were much higher on Tuesday. This was in part due to short covering.
As you know, the US dollar index and crude oil futures are both outside markets that play a significant role in precious metals pricing.
That’s all we have for you today. Please check back again tomorrow to find out how the trading day went.
Till next time…
Monday’s trading day was relatively quiet on this April 8, 2013. But there was obviously some news that to place throughout the day, and we will fill you in on the pertinent information.
But first, let’s take a look at the silver numbers. The commodity closed at $27.30 per ounce today. This is a five cent loss, or a 0.18% loss, depending on how you look at things. (Take a look at last Friday’s post if you’d like to make a comparison.)
At the highest point during the trading day, the commodity traded for $27.48 per ounce. At the lowest point during the trading day, the commodity went for $27.05 per ounce. As you can see, that was not a very wide range at all.
Let’s move on to the news during today’s session…
Gold traded modestly lower on a very quiet Monday. There was chart consolidation in the market, plus a technical pullback due to the gains on Friday.
We saw minor US economic data on Monday, and this didn’t affect the precious metals market one way or another. Traders and other investors are hoping for fresh fundamental input in order to drive the precious metals market forward. So far there hasn’t been any helpful news.
North Korea is currently bringing some attention to the marketplace. They have been making nuclear threats to South Korea and the United States.
For the most part, investors and traders believe that this is just trash talk and nothing more. But, there’s no question that the United States is taking North Korea’s threat very seriously. They have even dispatched military assets to the region that surrounds North Korea.
But the market is taking this news very well. If the conflict were to arise, that would obviously change very quickly. The new leader of the North Korean regime, who is young and untested, is quite unpredictable. So well soon see how things play out.
The US dollar index was higher on Monday. The bulls still have strong control over the technical advantage of the greenback. This is a negative sign for precious metals buyers.
Nymex crude oil futures were also higher on Monday. This is mainly in part to short covering. The bears still controlled the crude oil market, and this is a negative sign on the technical side for precious metals investors.
That’s about all we have for the news today. Don’t forget to check back with us again on Tuesday. We will update you on all of the day’s events and fill you in on the current prices.
Thanks for checking out our site. We really appreciate it.
Till next time…