Commentary for Monday, Feb 10, 2014 – Gold drifted higher once again Monday up $11.50 at $1274.80 and this makes for the highest number we have seen 2014. For the third straight week gold broke through $1270.00 and this time managed to hold the higher ground.
So there is some tension building which is an expectation gold has not seen for sometime. Chinese gold demand for 2013 came in at 1175 tons up 41% so the notion that China was slowing down on accumulating gold bullion needs to be looked at again even in light of rumors that her economic numbers need revision. China has been literally closed a week (New Year) and just reentered the market today.
The numbers out of Europe looks less troublesome this morning. The dollar has been on a steady drift lower even with concerns about emerging markets which has also helped gold move higher.
Silver closed up $0.18 at $20.10 in lackluster trading but physical demand remains steady. It is not accelerating and neither is it slowing down so the public seems to like the buying area on either side of $20.00 and we have seen a few more moderate silver sellers these past few days.
Platinum closed up $6.00 at $1385.00 and palladium closed up $8.00 at $717.00. Platinum was slightly higher even on news that South African strike talks would resume tomorrow. The miners’ strike is beginning a third week and platinum prices have actually moved lower.
Technically gold is creating interest in that if you look at its 60 day chart you will see we have closed generally higher since mid-December ($1190.00) moving through the $1240.00/$1260.00 belt of overhead resistance. The upward curve higher is unmistakable and so the technical and momentum traders are getting interested.
Still if you consider a wider view (early December of 2013) this $1240.00/$1260.00 band is where gold got into trouble the last time we looked at a possible $1300.00 run. What makes this time around look different is the continued demand for gold from both China and India. And the possibility that the stock market might be overbought which could lead to further hedge buying which is something we have also not seen lately in the US market.
It is not the perfect storm for gold because the currency problems in minor countries collect a great deal of press but really don’t mean much unless you figure they are harbingers of problems just beginning to surface. At any rate I would say gold looks much better these days technically but we will have to see a break out move from current levels and continued strength above $1300.00 before a medal is awarded.
Activity with the walk-in cash trade was busy all day and so were the phones. There is nothing like higher prices to create interest.
The GoldDealer.com Activity Scale is a “5” for Monday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Tuesday – 7) (last Wednesday – 4) (last Thursday – 4) (Friday – 4) (Monday – 5). The scale is 1 through 10 and a reliable way to understand our volume numbers.
On the new GoldDealer.com site: Comex closing prices are posted (upper right hand corner of the home page) and are included on individual landing pages. Live pricing and the change function works: you can now compare the Comex close with live product pricing for a true value picture. The All Bullion Products link lists all products and includes all Bid (blue) and Ask (green) prices. Visitors overlook the All Bullion Products so we reworked the link. When you hover over it with your cursor the text is highlighted.
Premium quotes look like this – “spot plus $50.00” or “spot plus $3.00” and bullion products have them listed under the live prices. This makes product comparison easy and GoldDealer.com is the only site on the net with this transparency. For example click on the link American Gold Eagle and under Our Live Buy Price and Our Live Sell Price you will see: our Buy Premium Spot + $15.00 and our Sell Premium Spot + $50.00 – Easy.
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The four flat screens downstairs with live independent pricing (BullionDesk.com) is a big hit with the cash trade. This live stream moves all the buy/sell prices on each product so the cash buying public can see the markets move on a real time basis. The site uses the same pricing model so no more guessing.
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Thanks for reading and enjoy your evening.
Today the best sellers in the store were the 1 oz Silver Rounds
