GOLD & SILVER TEST KEY SUPPORT LEVELS AND RALLY BACK
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 Tuesday, the Bureau of Labor Statistics reported that its Consumer Price Index rose 0.3% in January, following December’s 0.2% increase. The data was hotter than expected with consensus forecasts calling for a 0.2% increase. Headline inflation in the last 12 months rose more than expected increasing 3.1%. According to consensus estimates, economists were looking for an annual increase of 2.9%. The U.S. Dollar jumped higher and after 40 trading days of staying above the key $2,000, the Gold price quickly dropped to a low of $1,986 per ounce last Wednesday.
Gold rebounded last Thursday and Friday, moving back over the key $2,000 level and closing on Friday at $2,013, down $14 for the week.
Gold tested the very important $2,000 level and briefly traded under that level, which wasn’t surprising to me after the recent economic returns. But seeing the massive and growing amount of Gold demand coming for Chinese investors is impressive. U.S. inflationary and employment reports directly affect the value of the U.S. Dollar and financial market sentiment in regard to future Federal Reserve actions.
Today: Over the long holiday weekend, Gold moved higher, reaching a one-week high on strong Asian demand. A weaker U.S. Dollar and Middle East tensions are helping the Gold price move higher. The buyers are back this morning with the Gold price reaching a high of $2,031 before seeing some light profit taking.
Silver was the most bullish precious metal last week, up $0.84 per ounce, closing on Friday at $23.44 on active trading volume. Silver did have high volatility last week, with a high/low trading range of $1.61 from a low of $21.93 to a high of $23.54 per ounce. That strength drove the Silver-to-Gold ratio down to 86-to-1, still an extraordinary level.
Today: Over the long holiday weekend, Silver moved lower on profit taking, breaking below the key $23 per ounce level. Today, Silver is trading above and below the key $23 level as it tries to establish a firm base for the next leg higher.
During my recent trip to Argentina I saw what Hyper-Inflation and currency devaluation was all about. Read my above article.
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