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Traders Buy Support Lines

Commentaries & Views

(Kitco News) - Metals find support at key levels. Both gold and silver found buying interest at their support levels of $1,255 and $16.55, respectively. The weaker tone to the dollar encouraged traders to buy the support lines for the metals but further gains should be capped, until gold breaks through the $1,265 area and silver re-establishes above $17.  Physical supplies remain abundant in North America and investors who are looking to enter the physical market are seeing historically low premiums.

If the market begins to step higher, these physical supplies will disappear quickly and premiums will re-set considerably higher. The mints have scaled back production and a surge in demand, especially in silver, could produce premium prices similar to 2015, where physical shortages spiked premiums by 200%. Gold support remains at $1,245, with initial upside resistance at $1,258. Silver support at $16.55, with $17 the overhead line.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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