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Daily Gold Report


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December gold and silver probed lower throughout the session on Monday. December gold lost $14.40 or just over one percent to close at $1310.8. Silver's drop was more aggressive as it lost over .54 cents (2.6 percent) to close at 1715.5. The spike to new yearly highs on September 8th was accompanied by multi-year lows in the Dollar. As the Dollar has put in what looks like a near term low on the charts, the sizable long position in both metals has come under pressure as support levels were violated during today's trade with new near term lows in sight. The Commitment of Traders report as of September 12th put the long position in gold at 291, 623 contracts an increase of 11,061 contracts on the week. Silver longs added 8,616 contracts for a net long of 85,099 contracts during the same period. With the S&P and Dow putting in new yearly highs week after week, the risk on mood in stocks shows no signs of abating. The trade does not appear to expect much out of the FOMC concerning a December rate hike. However if there will be more focus on any mention of the Fed rolling out of their massive 4.5 trillion balance sheet, it maybe viewed as a form of tightening, which could support the Dollar. Despite last week's missile launch by North Korea,Investors grew less worried about tensions on the Korean peninsula in my view today. Chinese President Xi Jinping and U.S. President Donald Trump spoke about pressuring North Korea with economic sanctions imposed through the United Nations, the White House said. Obviously this can change at a moments notice due to the unpredictability of the North Korean regime. Price action in the Dollar is paramount going forward for metals.

Technicals come in as follows for the remainder of the week. Support is down first at 1304.6 and with a close below next support is down to 1286.6 which is the 50 day moving average. Resistance sits up at 1314.8 and then up at 1329.7. For silver support is down at the 200 day moving average at 1711.5. A close below here and look for the 100 day moving average to be tested at 16.85. Resistance is up at 1735.5. a close above here and 1752.5 could be next.

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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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