Gold Settled $3.70 Lower ($1655.80)
This week April Gold Futures traded a very choppy and volatile $82.70 range consisting of a high of $1717.40 and a low of $1634.70. The precious metals have been under siege this week as once again comments from Tuesday's FOMC Meeting started the massive sell-off as traders and investors took profits and choosing the indices as their investment choice. The FOMC confirmed that due to the improving U.S Economy and Jobs sector more easing was not necessary for the short term. The threat of a Quantitative Easing 3 was certainly one of the pillars that had supported Gold since the first of the year. More easing is anti U.S Dollar and therefore bullish Gold. Friday's session covered a choppy $25.20 range while May Silver traded a .62 cent range and settled at $32.60 per ounce for the week.
News From The Week :
Initial jobless Claims was reported to be 351,000. This was better than the 357,000 that had been projected.
Today's avalanche-like sell-off was a continuation from yesterday's FOMC meeting...
It is certainly apparent that precious metals traders continued to react to Tuesday's Federal Reserve policy statement. The FOMC expressed a moderately positive outlook for the U.S Economy and therefore removing any short term hopes of more monetary easing.
Gold has been supported by (1) Physical buying from the Asian sector. (2) The geo-political tension between Iran and the West. (Causing higher Crude Oil prices)... (3) The hints from the FOMC (the first 6 weeks of the year) that a majority of the voting members were in favor of more easing. At least short term that has caused the precious metals to lose its glitter.
However, keeping Interest Rates at benchmark lows through 2014 is bullish Gold.
We will see if this recent 3 trading session price break will bring 'bargain buying opportunities.
May Silver closed $1.42 lower and settled at $32.18.1 per ounce.
April gold was trading over $1790.00 per ounce before FOMC Chairman Ben Bernanke single handedly started the avalanche sell-off February 29th by stating there would be no near term easing
Today's April Gold Futures traded a choppy yet technical $19.90 range.
Traders appeared to be probing the technical support and resistance levels as they await the results of today's FOMC meeting prior to making their trading strategies. The Gold market has been trading in a very tentative range as physical buying from the Asian sector continues to be the underlying support. Traders are still eyeing the geo-political tension between Iran and the West. Any signs of escalation in the region would lead to the rally momentum that gold bugs are looking for. In the meantime we continue to hear the same statements from the FOMC about the state of the U.S economy. SUCH AS : (the following below)
Fed says unemployment declined notably, but remains elevated
Says oil, gasoline will push up inflation temporarily
Strains in global markets have eased, but still pose risks
Economy expanding moderately
Household spending, business investment advance
They see inflation at or below mandate-consistent levels
Fed repeats exceptionally low rates at least through late 2014
Will continue operation twist and MBS reinvestment
Richmond Fed boss Lacker dissents, saying conditions don't warrant
exceptionally low rates through 2014.
Today's April Gold Futures session trade technical and choppy $24.90 range as traders reacted to China's biggest trade deficit in at least 22 years. The economic data from China signaled weaker growth in the world's second largest user of oil. This may suggest that China may not be importing as much Oil and sent April Crude Oil future prices as low as $105.38 per barrel today.
Despite poor economic data from China the Gold futures traded a very technical range and settled just under my $1701.00 pivot number. It is my opinion that traders are keeping a watchful eye on tomorrows FOMC meeting. We Gold bugs all remember what happen last time Ben Bernanke spoke....($80 price drop)....stay tuned !
The LOWER CRUDE OIL prices are bearish precious metals.
MY SWING NUMBERS 3/19
RESISTANCE # 2..............$1678.00
RESISTANCE # 1..............$1666.00
SUPPORT # 1..................$1642.00
SUPPORT # 2..................$1628.00
RESISTANCE # 2.............. $33.12
RESISTANCE # 1...............$32.86
SUPPORT # 1............ ... . $32.24
SUPPORT # 2................... $31.88
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