The gold market continues to grind its way higher on the charts in a fashion that revives bullish sentiment and could set the stage for a consistent trade above $1,325. Apparently gold is drafting some support from safe haven buying related to increased recession fears but also because of a slight pickup in physical jewelry demand in India.
In retrospect the gold market posted an impressive trade last week, as the market clearly discounted/ignored strength in the dollar and remained within its March uptrend channel. The gold market could be facing a critical juncture as intense political battling in Washington DC over the independent counsel report will continue to get in the way of doing the nation's business.
In the end, gold resiliency favors the bull camp, support appears to be fairly solid, and the net spec and fund long positioning is not overly long. The March 19th Commitments of Traders report for gold showed managed money traders were net long 57,746 contracts after net buying 15,972 contracts on the week. Non-commercial & non-reportable traders were net buyers of 11,538 contracts, bringing their net long to 141,906.
As indicated already, the silver market diverged with the gold market at the end of last week but the action in gold looks to be fairly supportive of silver especially with the net spec and fund long in silver remaining fairly modest. The Commitments of Traders report for silver showed managed money traders were net buyers of 361 contracts for the week ending March 19th, bringing their net long to 9,994. Non-commercial & non-reportable traders were net sellers of 2,719 contracts, reducing their net long to 43,442.
We invite you to subscribe to receive our more comprehensive market update delivered directly to your inbox.
Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Financial Services LLC, unless otherwise expressly noted.
