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Backfill Trade Completed Overnight

The producer price index for May came in with a drop 0f 0.2%, again confirming inflation is not “yet” an issue, which may give the Fed pause.  From a technical perspective, the gold market backfilled to the $1,277 level but now requires a push through, with momentum,  before I see an attempt of the $1,300 target. The geopolitical risks associated with Iraq has created some safe haven buying, but certainly not as much as one would have expected. However, it has had an effect on the equity markets as a “surge” oil price brings back into question the viability of an ongoing global recovery. We suggest the market will not be aggressively short into the weekend and traders should buy intra-day weakness, in the $1,267 level for gold and the $19.44 level for silver.

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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