Metals Commentary on Jan 13th

Precious metals have slowly inched back higher trending above support lines in both Gold and Silver as the Euro fights back against the USD today with the Euro trading at a $1.32 handle today.  Today the Gold market is lower by about $5 here to $1,382 but above the $1,370 level as there was a lot of consolidation going on for the last two weeks now after that huge fall from $1,420.  Silver futures for March delivery fell 16 cents, or 0.5 percent, to $29.385 an ounce in New York. A decline today would be the first loss in four sessions. Palladium futures for March delivery added 1.1 percent to $815.40 an ounce in New York, and earlier touched $819.50, the highest price for a most active contract since March 2001. Platinum for April delivery gained 0.4 percent at $1,809.10 an ounce. (1) There hasn’t been a whole lot of buzz after the talk of Gold supposedly liquidating even further after that $50 drop but the bulls have came in to support the market at $1,365 and have taken some pressure from the downside for now.  I look to play the long side when Gold gets back down here and even if the next support level gets reached at $1,320 as I think a dip in the gold market is just another buying opportunity to go long as prices will likely head higher this year.

– Daniel Cronin, Metals Guru


Metals Review – January 03, 2011

Precious metals continued to rally last week and will likely do the same this week as Gold traded up to $1,420 as investors gobbled up the yellow metal in front of the big resistance number at $1,430.  Gold has been making W shaped patterns in this market now and will likely continue to head higher as prices have hugged the 50 day moving average at $1,375 only to bounce off and trade higher.  I think Gold will test $1,430 this week and eventually break the mold.  Silver also trading higher and I believe this metal can break the $30.70 resistance area this market has seen at this level thus far.

Copper had an unbelievable breakout above the $4.30 mark to trade up to $4.45 Friday and it feels like there is no stopping this market.  It has now broken above 2007-2008 highs and looks like it is going to continue to move higher.  I will look for a period of profit taking to try to get in on this market and to not chase.  Somewhere around $4.35 to $4.30 would be a good entry level to me, if this can be attained.

Resource: Pitguru Weekly Review