Spot gold slid to yet another 12-month low in overseas trading, but rebounded intraday to trade briefly higher on the day. Trade tensions and a stronger dollar associated with Fed optimism about the economy have been weighing on gold of late. However, the intraday recovery was sparked by President Trump’s CNBC interview where he lambasted the Fed for raising rates.
The President said he picked a good man to head the Fed, but he does not agree with him and is “not thrilled” with rising rates. While Mr. Trump is “letting them do what they feel is best,” there was nothing subtle about his comments today.
Whether the President’s comments impact guidance or policy moving forward remains to be seen. I’d guess not, but the market sure got spooked.
Gold traded as low as 1211.52 earlier, just shy of the targeted 1204.72 low from 10-Jul-17. After the President spoke, the yellow metal rallied to new intraday highs, but has thus far been unable to take out yesterday’s high at 1229.19.
This leaves the more important 1236.45/1237.93 level (former support) protected. Focus remains on selling strategies in anticipation of a more serious test of the 1204.72 low.
Silver extended to the downside as well, establishing a new 12-month low at 15.18. We had targeted a minor low from 10-Jul-17 at 15.17.
While silver has moved off the lows due to President Trump’s comments, the previously established intraday high at 15.57 was left untested. Focus remains on the downside. A short-term breach of 15.18/17 would lend additional credence to the scenario that suggests potential is toward the 14.16 spike low from early-July of last year.
Platinum exceeded the 796.89 low from 03-Jul to set a new 10-year low at 791.85. Despite the intraday bounce, there is nothing to detract from the dominant downtrend. Potential to the 732.50 low from October 2008 has been confirmed.
Palladium plunged back below $900, taking out key support at 896.50 (06-Apr low). This was the logical capitulation point for any remaining bulls and palladium fell as low 859.06 before getting a little relief. That’s a new 12-month low and the next support level I’m watching is 836.03/827.05.
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