A tight trading range overnight in the U.S. Dollar is keeping the price of Gold from moving in either direction.
Unfortunately, the recent strengthening in the Dollar Index is acting as a headwind to higher precious metals prices.
The good news is, the technical levels of resistance in spot Gold are not seen until we see the price reach the $1,327 level. So, we do have upside potential.
Meanwhile, selling pressure has been consistent ever since Gold and Silver prices came off this week’s highs of $1,324.55 per oz. and $15.58 per oz. respectively.
Profit taking continues in the Palladium market as some supplies have been showing up in the Zurich vaults causing the Palladium EFP to continue to come in a bit at minus 35 minus 25. One-month lease rates are holding steady at 7 percent.
At this juncture, demand still exceeds supplies by a good margin, so one can say the Palladium market still has strong fundamentals.
Most of the PGM traders I spoke with think the highs in the Palladium market have already been established. In the coming days we will continue to watch the action in The EFP market to get a sense of what’s developing.
The Platinum market continues to see inflows into the ETF arena. So that along with steady support from the Commodity Hedge Fund Managers, it seems that levels of support are not in play at this time.
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.