Hawaii Six O - Gary Wagner
Preholiday Volume and Subdued Trading Characterizes Gold Pricing
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The best way to characterize trading activity today is quiet. In honor of Good Friday tomorrow the precious metals markets will be closed and we are observing pre-holiday volume and range decline. As of 4:40 PM Eastern Standard Time gold futures are trading up $0.90, with the most active June contract fixed at $1277.70. The daily trading range of $6.70 was also compressed with an intraday high of $1279, and low of $1273 per troy ounce.
This quiet however comes after the stormy and tumultuous week which resulted in a swift decline in gold pricing. On Monday, April 15th gold pricing broke below its 100-day moving average for the first time since November 27th of last year. Although pricing managed to close just above it, Monday’s move was a precursor to a dramatic selloff that occurred on Tuesday of this week. Selling pressure on Tuesday was extremely strong, as market participants witnessed gold open at $1290 and close at $1277.60, the lowest price point gold has traded to since December 26th, 2018.
Technically speaking gold is at a critical price point. Currently there is a potential for gold to find support at the .38% Fibonacci retracement level which is fixed at $1275 per ounce. If gold cannot hold that price point it most likely will trade to the next level which is the 50% Fibonacci retracement at $1245. Resistance resides just at the 100 day moving average which is currently at $1299.
Palladium Prices Surge Once Again
On March 21st, palladium futures opened at $1564.70, just a few dollars shy of its all-time record high which occurred the day before at $1570 per ounce. By the close it had been cut down to $1517 per ounce, a precursor to what was to come in the following days. By March 28th prices have dropped substantially following two concurrent days in which palladium prices lost over $100 each day chopping it to just $1309 per ounce. This week began with palladium trading at approximately $1334, and on Wednesday as well as today began to trade sharply higher. Over the last two days palladium pricing has gained almost $70. This includes today’s gains of $30, a +2.17% gain. Palladium futures are go into the holiday weekend with a price of $1408.60 per troy ounce.
Platinum prices also jumped today gaining 1.81%, or $16.10, resulting in platinum futures closing above $900 for the first time this week, and settling at $907.50.Both metals are primarily mined in Russia and South Africa, with the supply chain mutually controlled almost exclusively by Russia.
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Wishing you as always, good trading,