Gold Surges to Major technical Resistance
Gold Surges To Major Technical Resistance
Wednesday October 14, 2015 08:38
(Kitco News) - The Shanghai index took it on the chin in the first few hours of trading, sending gold through the $1,168 level before running into selling at the critical $1,178 area. The index rebounded throughout the day, which encouraged profit-taking into to the Asian close in the metals. The U.S. dollar continues to soften, which is lending support to the metals. The technical and emotional gauges continue to support higher metals prices. Technicals continue to indicate higher lows and highs, and the U.S. dollar continues to see selling pressures. Buying the dips appears to remain in vogue. Generally break-ups or downs through key levels are never successful at the first or second attempt. Third time generally a charm. $1,168 twice, during New York hours without a break. Watch for the third attempt. If it fails again, selling may emerge.
Note: With the recent rise in silver prices, premiums on some of the more popular silver coins are beginning to wane. Our clients were able to lock in silver pricing in the mid $14’s and now can pick up Eagles at premiums of $2.00 below the peaks seen in summer. I’m not sure how long the silver Eagle premium will remain “somewhat” competitive, still believe its high relative other opportunities, but the U.S. Mint will end production of the 2015 coins soon and then there is generally a window of 4-6 weeks where no coins are available until the 2016 year launches. If, within this window demand re-surfaces, premiums will once again step higher
By Peter Hug, Kitco Metals Global Trading Director; phug@kitco.com