Precious Metals See Renewed Luster
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1287.5
Fundamentals: Gold is on a tear and since we have pounded the table with our Bullish thesis and belief, we will spend some time talking about the other metals performing so well of late. Palladium is again trading at the highest level since 2001 and has gained as much as 4% from Friday’s close is currently up about 3%. We have discussed Palladium quite a bit in our Midday Market Minutes and we do believe that it will make a new all-time high taking out the 1090 level. Silver also has woken up gaining 2.5% from Thursday’s close. This is a combination of strong global growth, especially Chinese demand but also a key catalyst is the weaker Dollar. In fact, we didn’t even get the token bounce in the Dollar after tax-reform was officially passed. The passing of the legislation merely held the sellers at bay. Take it for what it’s worth but we wouldn’t be surprised to see the metals take a 24-hour breather before continuing higher later this week or by the reopen Tuesday at the latest.
Technicals: Gold is trading into key resistance at the 1288-1292.5 level and ultimately needs a close above 1303.4-1304.7 in order to spark the next bull leg higher. Silver has tremendous overhead resistance; the 50 dma at 16.72, a key retracement at 16.80, the 100 dma at 17.02, the 200 dma at 17.16 and not to mention a major trend line from the September highs just above $17. Gold can have a constructive correction that goes back to test and holds key support at its 200 dma at 1278-1278.4. Let us be clear though, we are, we have been, and we remain Bullish the metals.
Resistance – 1288-1292.5**, 1303.4-1304.7****
Support –1278-1278.4**, 1272.5-1273.9**, 1259.7-1262.3**, 1252.8**, 1237-1241.7**, 1214.5-1225***