Gold Continues Steering the Ship

Gold continues to be the captain of the ship as precious metals remain stuck in their recent trading ranges. As gold continues to pivot around $1,200.00 we have seen physical demand pick up every day this week on the dips while speculative and perhaps producer selling emerges on the rallies. Economic data has been mixed all week as have comments from FOMC members, which has only added to the directionless tone of our market. The headline story for today as we already begin thinking of what our market will do next week is the big sell-off in equities, which is being fueled by concerns over the Greek debt situation (will it remain in the EU) and regulatory concerns in the Chinese market which will bring greater regulatory oversight.

On the positive side for gold, we have crude oil making a new high for 2015 yesterday, interest rates as witnessed by the 10-year bond remain very low and the USD has backed off over the second half of the week. This morning’s much anticipated reports on the Consumer Price Index and Leading Economic Indicators followed the trend and were mixed as compared to economic consensus, but perhaps ever so slightly supportive of precious metals. As the U.S. equities slide is continuing as I finish today’s commentary, it will be interesting to see if traders move into gold and it can challenge the 100-day moving average at $1,212.25.

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Have a good weekend,