Here’s the news from last week:
- Better than expected data in the US cushioned the US Dollar
- Dollar weakness at times last week failed to lift gold and silver prices
- The Dollar showed signs of recovering
- The (metals) bull camp faces ongoing liquidation threats this week due to a recovering Dollar
- Weak-handed longs in gold and silver capitulated.
- Reports of selling by middlemen in India will put pressure on the metals market
- Prospective positive US data ahead is likely to lead gold and silver downward
- However, August gold managed a low to high bounce of $5 an ounce following Chinese PMI readings
- On the other hand, it is possible that traders might anticipate decent US April Non-Farm Payroll gains from Friday’s report
- Prices may rebound versus the prior month which could put the sellers in control
- The recent Commitment of Traders report in gold shows a long position above 115,000 contracts justifying some of last week’s liquidation
- Support for gold may come on news of a sharp year over year jump in March Chinese jewelry sales
- Support may also come from a rise in gold derivative holdings last week
- Last week’s ability to regain the $1,175 level offers some support to the trade going forward.
- However, gold in under all of its major moving averages
Now, based on that information, go ahead and make an informed buying decision! Now, see my advice below.
All Things Considered – John’s Commentary:
While all this information is factual and well reported, it is intended for the active trader. Investors read ultra-short term information and attempt to make long term purchase decisions.
Focus on the big picture. Tune out the news du jour – to the best of your ability. Ask yourself again why do you want to own the metals in the first place? Then take action.
