Some life seen in the physical market, exhibited by domestic refiners reporting an increase in demand for product over the last two weeks. They say it’s a lot different from the last two months where they were making outbound calls looking to raise some cash to buy new lots of scrap material.
Some indicated that during the summer months, the shelves were getting heavy and they were tired of looking at all the products they had so a reduction in some premiums were in order.
So everyone’s feeling a little better as the worst seems behind us all in the physical arena.
We can look forward to the debates, the September FED meeting, and the presidential election outcome to create some demand for metals. Some billionaires are making news with their opinions, like Mark Cuban expecting a crash in the equities if Donald Trump is elected. All this chatter from prominent individuals such as FED presidents, Donald, Hilary and billionaires such as Mark Cuban, George Soros and Carl Icahn, has the ability to effect the markets.
In the meantime, we witness a slightly stronger dollar this morning putting a little pressure on the price of gold. Silver also feeling like she’s coming down with something, as the fun days when she was over 20 seems to be fading fast.
But there is hope, as demand in the ETF market continues to flex its muscles. Silver ETF holdings hitting an all-time high this week continues to support the fact that in a balanced portfolio, metals is a key component.
My professional chart gurus are asking for some time to show what they are made of and want to share their levels of support if the market trends downward. So in gold, the first level of support is close by at $1,332 in the December contract and $19.37 in the December contract for silver. They expect the market to hold these levels. I believe they are up two dinners on me.
Have a wonderful Friday.
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