January 21, 2015
“The Market Gage” features insights into the precious metals market from Roy Friedman. Roy has over 30 years of in-depth experience in all facets of precious metals.
Gold and silver continued their impressive run overnight as gold broke above $1,300.00 for the first time since August while silver flirted with $18.50. Silver has really been the star of 2015 for precious metals traders as it has gained almost 20 percent this year and the gold silver ratio has dropped to just above 70 after being above 80 not too long ago. Tomorrow is the E.C.B. policy meeting; the buying we have seen in Europe today is likely on the back of expectations from European investors who feel the Euro currency will continue weakening as a bond buying QE program is expected to be announced tomorrow.
Technically, a close above $1,300.00 gold and $18.50 silver will be welcomed by momentum traders, but those with a shorter time focus may be looking at the gains gold and silver have recorded so quickly this year that they are more inclined to liquidate their recent speculative longs positions and look to re-enter the market on a dip. As I finish today’s commentary, we have another surprise announcement from a Central Bank as the Bank of Canada just announced a 25 basis point cut in their key interest rates as the deflationary dance continues globally.
Source: Dillon Gage