Metals report, courtesy of some electronic newsletter that my brother receives. I disagree with the writer on one point -- I would be unloading those gold calls now if I didn't do so today.
5/10/00
The Gold and Silver markets were in the doldrums today. European gold market was mostly range bound and when June gold opened in NY it too was flat. In fact, the range for today's session was barely over $1. On Friday the COT showed that large speculators have increased their short positions by 27&% from two weeks ago, and that large spec longs were basically flat. Last week strong employment numbers...the strongest in 30 years, and increasing wage pressure added sentiment to the idea that the Fed will raise rates at least 50 basis points. The gold market seems to be factoring in the COT numbers, a rate rise and the gold sales from the SNB, but if rates are hiked more than expected, gold could pop, especially with so many small speculative shorts in the market. June gold closed at 278.6 up 40-cents, and for the moment, the market is technically neutral, with resistance at 281.7 and support at 276.7. If you have some gold calls hang onto them until the Fed meets.
July silver opened flat in NY as the European session was subdued. By the close silver had edged a hair lower to settle at 508, even on the day. In the last few days silver has been able to garner a small bit of support from bulls and it has edged a few cents higher, but not enough to excite anyone...yet. The 500 area is still providing good support but there also seems to be resistance in the 520 area which is keeping the market rangebound. When silver prices recently dipped below 500 the bulls just couldn't stand on the sidelines, they jumped in to support prices, and they may do the same again if we dip below 500. The 495-500 area has acted as support and a double bottom is in place. |
