Gold has a two-day recovery and remains in a “bullish mode” after all the bad news out of China on Monday had been absorbed.
Monday’s open interest in gold revealed that only 6000, as I call them nervous longs, exited the market on Monday’s selloff.
What I find amazing are the almost daily increases in the gold ETFs, now sitting at a new 2016 high of 59,849,362 ounces.
Dollar index is in negative territory at 93.93 at the time of this report, far from the lows of 91.91 when gold was trading over the $1,300 dollar level for a short period of time a couple of days ago.
A story that was shared with me this morning is that JPMorgan Private Bank’s Solita Marcelli said yesterday on CNBC’s “Futures Now” that they are recommending to JPMorgan clients that they position themselves for a “new and very long bull market in gold.”
After seeing three back-to-back years of losses, precious metals have rallied 20 percent in 2016. And that’s just the start according to Marcelli. She indicated “$1,400 is very much in the cards this year.”
As I indicated in previous comments that in a negative interest environment, as we see in some parts of the world, gold remains an attractive investment in the physical market as well as in the ETF arena.
Some commodity funds, as well as some Wall Street day traders, continue their long positions in gold, as they believe the dollar will continue to weaken and the FED will not have the data required to raise rates anytime soon.
Silver, platinum and palladium are also in recovery mode after Monday’s selloff.
Have a wonderful Wednesday.
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