Thursday September 05, 2013 08:20
The market held the $1,400 level yesterday and again this morning but there is a tentativeness to the feel. The Syrian debate continues to add “modest” support to the market but the South African gold strikes, continued physical demand, and continued fund inflows are the better fundamental factors. However, tapering continues to be discussed as a possible September event and strong employment data this week may scare the weak bulls. This market will grind and not be an easy ride. Both the investor group and traders will be less committed and more apt to jump from a position on daily headline noise. This will become more a technicians market, maintaining stops and entering on resistance breaks.
By Peter Hug
Global Trading Director
Kitco Metals Inc.