We start the day on a quiet note with oil and the dollar in positive territory, something that we haven’t experienced for quite some time.
Gold feeling slight pressure this morning because of the stronger dollar and higher oil prices. We have also noticed that base metals as well as Silver, Platinum and Palladium all in green territory.
Gold in backwardation mode. Feb-April gold switch this morning trading .30-.40 back indicating a slight tightness in the metal. London EFP quoted a positive 20-40 figure, haven’t seen this in a long time. One might think, that the reason for this is, the recent increase in ETF holdings over the last ten days.
Refiners and government mints report steady demand for product and are right on target based on their expected models for the year.
A strong Equities market open is expected after seeing oil up over 5 pct. this morning. A welcome breather from all the madness of late.
Across the pond: ECB’s Draghi yesterday indicated downside risks increasing again and sees a need to continue stimulus at least to the end of March 2016. The news created a buy signal to our equity markets here.
Have a wonderful weekend.
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