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Big Pop

Monday August 26, 2013 08:59

Wow, US home sales dropped 13.4%, lowest reading since October 2012. Wow, maybe the economy is not that strong. Wow, maybe the Fed won’t taper in September. Wow, if US doesn’t tighten, sell the dollar. Wow, continued easy money may be good for metals. Add Egypt and Libya to the mix and wow, the market wakes up and breaks $1,377 with ease and is now at a pivot to test $1,400, with a potential short term target of $1,424.

I am suspicious of a continued weak dollar and I believe the US economy is in better shape than the Euro-zone. Also, this move is in extremely thin conditions. It technically remains constructive, but place your stops at $1,377 and if a break above $1,400 occurs, raise to $1,397.

By Peter Hug
Global Trading Director
Kitco Metals Inc.

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 precious metal products, 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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Week of August 19th, 2013

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