While gold and silver prices managed to recoil and recover impressively from the latest lower low for the move yesterday we don't get the impression that the overall environment has shifted back in favor of the bull camp yet. Certainly there appeared to be some bargain hunting buying off the spike in economic uncertainty following yesterday's noted manufacturing slump in the US.

However with global equity markets all lower overnight and economic uncertainty stoked further by another wave of soft data, overnight traders might have expected to see gold prices tracking higher today. Apparently news of another North Korean missile launch has also failed to inspire much in the way of geopolitical safe haven buying this morning.

We do think the trade situation has shifted back in favor of the bull camp following very nationalistic and aggressive Chinese statements at their national celebration as the Chinese President suggested the rise of China will not be held back by protests in Hong Kong or by the trade war.

In retrospect, the December gold contract did forge a very impressive recovery bounce of nearly $30 Tuesday morning in the wake of the slump in US manufacturing and that action probably weakened the resolve of some bears. In fact, the recovery in gold prices yesterday was all the more impressive considering that Russia announced a double digit increase in their first half 2019 gold production relative to year ago levels.

Not surprisingly, the silver market also showed significant recovery capacity yesterday, but its post economic report rally was less significant than gold at $0.43 as it was probably fretting over the prospect of reduced industrial demand in the face of slowing.

Fortunately for the bull camp, gold ETF's saw a 12th straight day of inflows with net purchases on the year reaching 10.1 million ounces. Silver ETF's also added to their holdings for the fifth straight session bringing this year's net purchases to 105 million ounces.

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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.