Volatile Precious Metals Trading Week

It has been a very volatile trading week in all markets, highlighted by a resurgence in our market, with extraordinary physical silver demand making this a week we all hope will continue for the foreseeable future. Following the mid-week lows, our market continued moving higher yesterday as the IMF lowered its forecast for global growth. Given the conflicting economic data we continue to receive this week in the U.S. and the IMF forecast, I continue to think the FOMC will raise rates only once this year and it will come closer to yearend, perhaps even in December.

This morning finds a somewhat calmer precious metals market as we trade near yesterday’s closing prices on lighter summer Friday volume. The big news this morning is that Greece and its neighbors in the EU and IMF appear to have reached an agreement that will keep Greece in the EU. In addition, the carnage in the Chinese stock market appears to be over for the moment, which has helped calm fears for equity traders. The noticeable reaction this morning is a sharply higher U.S. stock market and a sharp selloff in bonds with the 10-year yield back to 2.40 percent. Physical demand should continue to support the dips, but short sellers may be looking at adding to positions in front of the 10-day averages at $1,166.10 and $15.53. A break above those levels could see us testing $1,185.00 and $16.00 in a hurry.

Have a good weekend,