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Weekly Gold Report


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Gold futures traded lower for the first week in the last four as once again an unrelenting rally in the equity market pushed weak longs into liquidation in both gold and silver. For the week, gold lost $25.90 to close at 1325.2 basis December futures. Silver lost just over .42 cents to close at 17.70. Fear gauges like the VIX (volatility index) got pounded today while the both the S&P and Dow traded to new all-time highs. Such action in equities is not bullish for metals and certainly wasn’t today. A second missile launch from North Korea that traveled over Japan last night as well as a lower greenback couldn’t sway prices higher through Friday’s session. The market basically shrugged off the missile launch in today’s trade viewing it at least for now as another one off event from the rogue nation. In my view investors are paying much more attention to global economic data as global Bourses churn higher. For example there were a few European Central bank governors citing the need to dismantle stimulus programs in the EU due to better economic conditions. In a note to investors from Commerzbank, it was noted that August gold imports into India, the world’s second biggest gold consumer, were the lowest so far this year.

The Fed meeting on Tuesday and Wednesday is the number one event to watch next week, in my opinion. While it is agreed by the street that a rate hike next week seems to be out of the realm of possibility. The focus will probably be focused on how the Fed might handle its widely expected balance sheet reduction announcement.Other key U.S. data to watch next week includes a number of residential reports, such as Building Permits, Housing Starts, Existing Home Sales, and House Price Index. A couple of additional ones to keep an eye on are Current Account, Philadelphia Fed Manufacturing Index, and Manufacturing PMI. Technical’s come is as follows for next week in gold and silver. For December gold, support comes in first at 1314.8 and below there at 1304.6. Resistance is up at 1339.9, and above there at 1354.8. For silver, support is down first at 1752.5. A close under and 1735.5 is next. Resistance sits up at 18.00 and above there at 18.30

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About the author


Sean Lusk is a registered commodity broker and Director of the Commercial Hedging Division of Walsh Trading in Chicago. Sean began in the business as a runner on the trading floor during summer breaks from college in 1993. Upon his graduation from Southern Illinois University at Carbondale in 1996, Sean began his career on the trading floor of the Chicago Mercantile Exchange (CME). Overseeing billions of dollars of transactions working as a clerk in the Eurodollar pit, Sean took the next step and became a floor broker and member of the CME in 2003. He handled customer orders for banks and investment houses from all over the world from inside the Libor pit at the CME.

Now, at Walsh Trading, Sean utilizes his experience in the marketplace and his professional client service skills to aid and assist customers in their trading endeavors.  

He writes daily and weekly commentaries focusing on both the Precious Metals and Agricultural Markets along with related market activity.

Sean has been quoted in various media outlets discussing futures markets. 

These include:

 

  • Futures Magazine
  • Reuters
  • Forbes
  • Kitco
  • Nikkei Press
  • CCTV.com

 

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