Precious metals ended last week on the ropes when gold failed to hold support in the mid-$1,180.00s as investors pushed U.S. equities to record highs. Trading resumed yesterday with a steady tone as several headlines over the weekend regarding Greece’s ongoing issues were followed by a story that the Chinese Central Bank may increase their bond purchases to include those issued by local governments in an effort to further stimulate their economy. The result was broad based buying throughout Asia which was followed by good buying in Europe.
This morning finds recent short sellers likely looking to cover as the rally continues with gold closing in on $1,200.00 and silver has spiked higher having just broken above $16.00. While the rally to begin the week is encouraging, it is yet to be seen if this is just another move within the recent trading range or resistance can be broken at the 100-day average in gold at $1,211.50 and $16.56 in silver. Keep a close eye on the market Wednesday afternoon as the FOMC meeting ends with a statement but no press conference with Chair Yellen.