Today, let’s take a look at technical data analysis, starting with gold. The price of gold rebounded yesterday after testing the spot level of support at the $1,303 – $1,304 area. Time and sale figures revealed that there were significant bids at those levels keeping the price of gold from falling any further.
The U.S. Dollar Index, unable to maintain its rally over the 97 level, is helping the price of gold keep its bid posture.
Now the next level of resistance that the price of Gold has to contend with is the $1,315 to $1,318 area. There were 5 tops reached on 2/4, 2/5, 2/6 , 2/8 and 2/11 highs. These gains were fueled by the pullback in the U.S. Dollar which accelerated when the Dollar Index dipped below the 97 level.
It wasn’t my intention to bore you with technical figures, it’s just there is little news to report that will move the price of Gold significantly in either direction at this time.
It is no different for the Wall Street gold traders as they just plug these levels into their Algorithm programs, sit back and look for other opportunities in other markets like
currencies and oil to keep themselves amused.
The spot price of Platinum, even though up on the day, is still struggling to get back to the $800 dollar level. For whatever reason, there has been a steady inflow of Platinum investors entering the ETF Market.
I find this activity interesting after learning that a lot of Hedge Funds exited the market when the price broke through the $800 dollar level.
I await to hear from Johnson Matthey today with revised supply – demand figures. Further supply deficits could remain supportive for the price and possibly see a retest of the recent record high at $1,436 per ounce.
I intentionally left out Silver because there is still so much above ground inventory available as the price action just seems to be on auto pilot. Refiners are still having issues finding a heathy premium for product and some still prefer to use the exchange for cashing in on their outturned material.
Have a wonderful Wednesday.
Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.