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.