Recent economic data has been showing a pickup in economic
activity, which in turn has spread to interest in the metals today.
The dramatic increase in durable goods data suggests that we could see
a pickup of industrial demand for the metals, and the increase in the
economic activity does have some longterm inflationary expectations
which would help gold and silver. In the short term, significant
resistance on the gold charts is at $330, and more at $335. We are
nearing these resistance levels now, and it is critical for prices
to move beyond these levels.
We are at some critical levels right now. We've come back down in the
stock market. A couple of days ago we were at 8050, now back at 7850,
a dow drop of about 200 points. Critical support at 7800 area, S&P
945 also a critical support level. If those levels are broken, we
could really start moving down.
Bonds had a nice upday yesterday, gave back those gains today, a bit of nervousness going into the FOMC. If we break to the downside in
the financials, especially stocks and bonds, then the metals probably
would start moving up. They are also at critical resistance right now. Either gold will fail at the $330 level and move lower, or we are going to breakout above. The next few days will tell us the story and definately make for very interesting trading.
Dec. gold $329.50 Dec. silver $4.785. Oct platinum down $6.60 @ $431.40. |
