By Walter Pehowich
The precious metal markets start off the week locked in a trading range. Gold open interest is up for the fifth week in a row, indicating new longs in place, I guess with hopes the price of Gold has bottomed out. Option traders on the street have flattened up their positions, giving up hope for a rally to $1,200 dollars going into CME option expiration tomorrow. Retail demand continues to lack any luster with most retail investors looking to equities as the fourth quarter rally continues.
With virtually no Gold interest here in the States from Wall Street traders, I have to look for other things to write about hoping my readers will stay interested in this boring market. So, as some Gold traders like to tell you, the longer we stay locked in a trading range, the more severe the move in the market will be if it heats up or cools off. What they can’t tell you (and neither can I) is when that will happen. I will continue to look for indicators that might get us out of this quick sand, but for the time being, honestly, I can’t. And I don’ t expect anything from my friends at the FED when they meet later this week.
Brings to mind a song for the older folks that you might remember. Please feel free to sing along: “Mama said there’ll be days like this, there’ll be days like this, my mama said, mama said, mama said.”
Have a wonderful week.
Walter Pehowich is the executive vice president of precious metals investment services for Dillon Gage with over 38 years of experience in precious metals investment services. His career began in 1977 at Bache (which evolved to Prudential-Bache Securities and then Jefferies Investment Bank). While at Jefferies, he served as senior vice president with oversight of investment grade precious metal products. Pehowich holds a National Futures Association (NFA) Series 3 license, authorizing him to advise and sell alternative investments in commodities and futures markets.