2nd Jan.2015,Friday. Global Research Gold & Silver Daily Update (MARKET COMMENTARY&TECHNICAL COMMENTARY). MARKET COMMENTARY. Gold edged lower overnight to open the day at 1194.50/1195.50. It touched a high of 1198.50/1199.50 on dollar weakness following U.S. jobs data that showed initial jobless claims come in marginally above expectations. The metal then fell sharply following a recovery in the dollar as Brent crude oil prices once again touched a new 5-½-year low. Gold eventually closed at 1181.25/1182.25 – the low of the day. Silver moved lower overnight, opening the session at 15.93/15.98. It climbed to a high of 16.04/16.09 before dropping along with gold to conclude at the session low of 15.58/15.63. TECHNICAL COMMENTARY. Gold has closed at 1181.75, ending the year with a modest decline from the 2014 open at 1201.85. The yearly candle hints to the risk of further downside, given that it has formed a bearish shooting star doji. On a quarterly basis, the meaningful break below long-held support around 1200 also suggests a potential for further weakness. Finally, the monthly candle confirms the risk of further downside, given its formation of a bearish shooting star doji. As such, we await a break of the November low at 1132.16. Silver has closed at 15.61, with a sizeable decline from the 2014 open at 19.47, completing its second consecutive year of decline. On a quarterly basis, silver has closed below its 50 quarter MA (16.25) for the first time since 2003 and completed its second consecutive quarterly decline. The monthly candle hints to uncertainty, given its formation of a doji – the bias remains targeted to further downside and we look to the 200 month MA at 13.60. The gold-silver ratio has jumped, rising back toward the upper end of its recent range. The ratio has risen for two consecutive years, and appears to be flirting with a break above resistance in the 75-78 range. On a quarterly basis, the ratio has registered its second consecutive gain, while the monthly candles hint to uncertainty with the completion of a monthly doji to end a five month stretch of gains.
Posted on: Fri, 02 Jan 2015 04:51:35 +0000
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