Gold And Silver Testing Key Support Level
Stuppler & Company is proud to provide our clients this Weekly Market Report (WMR). The report gives you my overview of the prior week’s precious metal and rare coin market activity and news. In each WMR, I share the current status of Gold and Silver along with their support and resistance levels. |
This Week's Headlines: |
Last week, Gold traded between $1,924 and $1,970 per ounce as it continues to build a firm base above $1,900 per ounce. On Friday, the U.S. Department of Labor reported that nonfarm payroll grew by 187,000 jobs in July. This was below the forecast of 200,000 and the financial markets reacted to the slower economic growth. Gold was trading at low of $1,924 and quickly rallied on this news, closing on Friday at $1,940 per ounce, down $15 for the week.
Other news that affected the precious metal markets last week was the downgrading of U.S. Debt by Fitch, this was the first downgrade by a major credit rating agency in more than a decade. Fitch cited “expected fiscal deterioration”. (see articles below)
U.S. AAA Debt Rating Gets A downgrade By Fitch White House Says Move ‘Defies Reality’
It Might Be Good To Hold Some Gold After U.S. Debt Downgrade
On the news of the downgrading of U.S. Debt, Gold first rallied, reaching $1,955, then the U.S. Dollar Index (over 102.25) and 10-Year interest rates (over 4.20%) started moving higher and Gold quickly sold-off.
Today: Gold moved down as the dollar and treasuries gained ground in early Monday trading. Investors await the next key economic report (consumer price index) on Thursday for signals on what the Federal Reserve will do next.
Last week wasn’t kind to Silver investors as Silver dropped $0.78 per ounce, closing the week at $23.61 per ounce. Silver reached a low of $23.17 on Friday, before the jobs report helped find fresh buying. The Silver-to-Gold ratio has dropped to 82-to-1, making this an excellent investment time.
A combination of increased world mint production and a normal summer slump in demand have caused premiums on many of the popular Silver investment coins to drop. The premium on the very popular U.S. Silver Eagle is now at spot Silver plus only $5.00 per ounce.
Today: Silver followed Gold lower in this morning’s trading, reaching a low of $23.04, as it tested the key $23 per ounce support level. A stronger U.S. Dollar Index and 10-Year U.S. Treasuries are putting pressure on precious metal prices.
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