Precious metals continue to be dominated by technical levels as discussed on Monday. Without any new geopolitical news, gold and silver have: probed lower, held, bounced and, as witnessed by this morning‘s early levels, are beginning to probe lower again. While gold broke $1,200.00 it held the mid $1,190.00s as physical demand picked up sharply, which brought us a bit of a short-covering rally back to the 100-day average at $1,215.00 where sellers capped the market.
Silver has held $16.00, but failed to break above the 10-day average at $16.40. In a further sign of global economic weakness and Central Banks needing to stimulate their economy, the Reserve Bank of India cut rates overnight and following a weak GDP report in Australia commentators “down under” are calling for another rate cut from their central bank in April. Friday brings us the February jobs report in the U.S. which is usually a market mover and it is likely to give us a good indication of the FOMC’s thoughts and time table for a rate hike when they meet on March 17th & 18th.
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Roy Friedman has over 30 years of in-depth experience in all facets of precious metals.