Commentary for Monday, April 21, 2014 – Gold closed down $5.40 at $1288.00 in what looks like thin follow-through selling and some technical filling but, like the close on Thursday before Easter I would discount this action because some markets are still closed because of Easter. At any rate we closed lower but gold did hold above recent highs after testing $1281.00 to the downside.
Gold has been hovering about the $1300.00 level unable to move higher even with numbers which indicate higher inflation and Russian aggression in Ukraine.
Allen Sykora (Kitco) – MKS: Sell Stops Push Comex Gold Lower In Overnight Trade – Comex gold weakened in Asia-Pacific trade overnight as two rounds of sell stops were hit, says MKS (Switzerland) SA. In early electronic trading, gold traded heavily, triggering stops to a low of $1,290.30, MKS says. “After briefly trading at these levels, a wave of buying in June gold alongside some solid demand out of Tokyo propelled gold all the way up to and above $1,300, trading as high as $1,301.50 before edging back down towards $1,299,” MKS says. “The market was quiet ahead of the Shanghai Gold Exchange fix, but once the Chinese market opened, a conglomerate of sell orders hit the exchange simultaneously, sending gold crashing lower. The metal found some slight support around the previous lows $1,290/91, but once $1,290 was given, a tirade of stops were triggered, smashing gold a further $8 lower before any kind of support was found.” Comex June gold traded as low as $1,281.80. As of 7:44 a.m. EDT, the contract was at $1,284.80, down $9.10 for the day. Much of Europe remains on holiday for a long Easter weekend, MKs notes.
Silver closed down $0.24 at $19.34 now comfortably below $20.00. Even with these lower prices I don’t sense any buzz even though retracement has been substantial. Silver reached $48.00 in 2011 so today’s closed of $19.34 would mean we have seen about a 60% retracement. From a technical standpoint this is about as good as can be expected even in a trading market with no buzz. The biggest sellers these days in silver bullion continue to be 1 oz silver rounds, 90% Silver Bags and American Silver Eagle Monster Boxes.
Platinum closed down $28.00 at $1400.00 and palladium closed down $30.00 at $777.00. The yearly low on platinum is $1375.00 and believe it or not the 777 is seen as a lucky number by some so I expect sales in palladium to be firm today even though overall action has been all over the place. Of the two PGM metals palladium has really benefited more (up 6.5% on the year) because of possible Russian sanctions.
Today, after the Easter slowdown was a carbon copy of Friday. Business was slow, very slow in the beginning but steady to very busy before the day was over so go figure. The walk-in trade picked up about 11:00 in the morning and the phones got very active in the afternoon. Overall I was happy with the traffic especially considering today was supposed to be quiet as a few world markets are still closed for Easter observance.
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