FOMC Minutes Barely Move Market

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The FOMC minutes on Wednesday afternoon provided no surprises and little new information. As such, the highly awaited release barely moved our market and had little impact on all other markets’ intraday trading. While the committee did express concern over a slowing in job creation and economic activity, they did remove key words like “patient” that normally provide support for precious metals and most commodity prices. All in all, I would say the report leaned toward the dovish side and a rate hike for June is off the table. The committee continues to stress that their decision on a rate hike will be data driven, but so far the data does not support a rate hike, especially while consumer confidence and retail sales are falling.

In front of a three-day weekend we find ourselves with a market again looking for direction. The USD has moved a bit higher, but so far precious metals have been able to shake that off. On the flip side, weak economic data has not provided the steam for higher prices. This morning’s consumer price data revealed that the Index has fallen 0.2 percent over the past 12 months which is a further sign that the FOMC’s inflation target will not be met and further delay a rate hike. With gold setting the course, look for support from $1,201.00 through $1,196.00 and resistance from $1,210.00 through $1,215.00.

Enjoy the long weekend,

Roy


Additional Revenue Opportunities – 2 part series

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Has the volume of customers selling scrap to you decreased? We are hearing that from clients in all 50 states. During the boom in the gold market in 2011-2012, everyone witnessed a huge uptick in people selling gold and platinum jewelry, stainless steel flatware and other items containing precious metals. People scoured every corner for items that could be taken in for melt. Since the precious metals markets have pulled back, and since many people sold everything they could find, we are told that business is slow.

There are other areas where you can realize additional revenue.

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Memorial Day Hours

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Memorial Day Hours

Dillon Gage Trading room and Refinery will be closed Monday, May 25th, in honor of Memorial Day.

FizTrade, electronic trading, will be open*:

  • Sunday, May 24: 5pm- 11pm Central
  • Monday, May 25: 5am – Noon & 5pm – 11pm Central

*Subject to change without notice. Hours are dependent upon Globex Market hours.


U.S. Mint Eagle Sales as of 5/21/15

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The following data is from the U.S. Mint as of 5pm on May 21st.

Gold
Coin Sales in oz. /#coins + from last week
One oz.
131,500
131,500
5,500
5,500
Half oz.
15,500
31,000
0
0
Quarter oz.
13,500
54,000
0
0
Tenth oz.
29,500
295,000
1,000
10,000
Total
190,000
511,500
6,500
15,500
Silver
Coin Sales in oz. /#coins + from last week
One oz.
16,571,000
16,571,000
590,000
590,000

Surging USD Sparked Precious Metals Sell Off

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Precious metals ran into a surging USD yesterday and as a result sold off sharply. While gold fell below the 200-day moving average at $1,216.00 and the 100-day average at $1,212.00, it did hold $1,200.00 which was a victory of sorts. Silver took a pounding and fell below $17.00, but as it has done so many times it rebounded on the back of a pick up in physical demand.

Yesterday’s surprisingly strong U.S. economic data came from housing starts which surged to a seven-year high. While a shocker, it may have been the result of builders locking in loans and beginning construction before rates move higher. This will be a closely watched economic release in four weeks, because if housing starts remain strong it will increase the likelihood for a rate hike by the FOMC in September. This morning finds gold and silver continuing to bounce but volume is light as we trade at $1,211.00 and $17.25. All eyes will be on the FOMC minutes which are scheduled to be released at 2:00PM EST. Comments about sluggish Q1 growth and expectations for Q2 should provide the hint for the FOMC’s plan for interest rates.


Precious Metals Recovered From Early Friday Losses

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Gold and company recovered from early losses on Friday buoyed by weak economic data as gold settled above the 200-day moving average at $1,217.00, which technically points to further gains ahead. Silver continues to impress as it settled above $17.50 on good physical demand throughout the day. Trading resumed yesterday with good physical demand in the Asia Pacific market highlighted by reports of very strong demand in India as gold and silver have recorded intraday highs of $1,232.00 and $17.77.

Looking at the week ahead, all eyes will be on the Wednesday release of the FOMC minutes from their April meeting. On the back of a run of weak economic data. talk is growing that a rate hike could now be pushed off until 2016, which has weakened the USD and given life to our market. Confirmation of the FOMC’s concern about the state of the U.S. economy with a dovish tone in the minutes could propel gold beyond $1,250.00, while a surprisingly hawkish tone could see us revisiting $1,185.00 very quickly.


Weak Econ Data Continues to Support Precious Metals

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Precious metals continued to be supported yesterday by weak economic data as the U.S. Producer Price Index fell by .4 percent in April. This provided the fuel for gold to break above the 200-day moving average at $1,218.00 as it recorded an intraday high of $1,228.00. Silver had an equally impressive day as it broke above $17.50 for the first time in three months. With much of Europe on holiday yesterday, their return today to higher prices brought sellers to the market. In pre-U.S. trading, a large sell order on the electronic trading platform took gold below support at $1,215.00 as $1,210.60 in the active June futures contract is the current low.

Continue reading “Weak Econ Data Continues to Support Precious Metals” »


U.S. Mint Eagle Sales as of 5/14

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The following data is from the U.S. Mint as of 5pm on May 14th.

Gold
Coin Sales in oz. /#coins + from last week
One oz.
126,000
126,000
1,000
1,000
Half oz.
15,500
31,000
1,000
2,000
Quarter oz.
13,500
54,000
500
2,000
Tenth oz.
28,500
285,000
1,000
10,000
Total
183,500
496,000
3.500
15,000
Silver
Coin Sales in oz. /#coins + from last week
One oz.
15,981,000
15,981,000
275,000
275,000

Gold and Silver Trading Steady

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Gold and silver, as they have done the past few weeks, have traded on a steady tone for the first half of the week. Despite interest rates rising as the bond market sells off, the USD weakened a bit yesterday providing the fuel for our market to probe higher. On the encouraging side, physical demand continues to pick up despite gold and silver continuing to trade in a well-defined range. On the concerning side, overall volume is falling as ETF, Futures and OTC volume contract. This morning’s spike higher comes on the back of very weak U.S. economy data. 

The closely watched retail sales report missed the target badly and further data showed that the prices U.S. consumers paid for goods imported into the U.S. fell for the tenth straight month. The continuation of weak data on the consumer side of the U.S. economy should put to rest any discussion of a rate hike by the FOMC in June and will severely impact what they can do in September unless there is a very significant change in consumer spending as the weather hopefully improves throughout much of the country. On the technical side, all eyes are on gold as it battles with very well defined resistance between $1,210.00 and $1,215.00. Silver continues to impress and perhaps a move towards $17.50 will give gold an added lift.

 


Palladium is Morning’s Biggest Mover

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Precious metals closed last week holding most of the intraday gains as a result of the weak data contained within the Non-Farm Payroll report, which further reinforced the “markets” belief that a rate hike will not come in June. Besides the downward revisions in February and March job creation, hourly wages, which appears to be a figure the “committee” pays great attention to,  are not increasing at a pace that would bring the upside inflationary pressures to support higher interest rates. The trading week began yesterday on a steady tone as physical demand continues to pick up throughout Asia.  This may have been the result of a surprise cut in the one-year lending rate from the Chinese Central bank which continues to look for ways to stimulate a sluggish economy.

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