On Friday gold dropped -2.50 to 1220.00 on heavy volume. Silver rallied, moving up 0.16 to 17.65 on moderate volume. PM tried to rally in Asia and London, but then sold off as the dollar broke out to new highs a few hours before the US market opened. However in the last 30 minutes of trading in NY, both gold and silver staged a decent end of day rally, bringing gold almost back to even, and moving silver clearly into positive territory. Traders did not want to be short PM going into the weekend, which I interpret as positive.
What’s more, PM’s relatively good performance on a day where there was a big [ 0.48%] dollar rally was a hopeful sign as well.
On Friday mining shares fell, with GDX off -1.66% on moderate volume, and GDXJ dropped -2.77% on moderately heavy volume. On the charts, GDX closed down right at support, while GDXJ remained comfortably inside its recent trading range. Longer term, GDXJ looks stronger than its cousin GDX.
For the week, gold was up 3.10 [ 0.25%], silver down -0.14 [-0.79%], GDX off -3.00% and GDXJ down -4.27%. Miners in general are underperforming metals right now, giving a strong “risk off” signal.
The USD
Once again, a strong week for the dollar, which broke above 85 closing up 0.89 [ 1.05%] to 85.79. After this breakout, my weekly charts no longer show enough relevant price history – the buck hasn’t been above 85 since July 2010.
This post was published at PeakProsperity on Sat, Sep 27, 2014 –.
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