Market Commentary – Novembers Doom 25, 2014 Gold had another quiet but steady day today with the market showing some resilience despite an initial sell off in the face of a positive GDP estimate release. Opening in Asia at $1196 gold took several more attempts at the “magic” $1200 price but did not eclipse the level until early Europe when a weakening U.S. Dollar triggered some buying. Reaching a high of $1202.50 during midday London, gold once again saw selling above $1200 and fell back to $1197 as New York opened. The quite constructive GDP number of +3.9% (preliminary) for the Third Quarter caught the market by surprise and gold immediately began to sell off, falling to the low of $1190.50 in a matter of minutes. However, bargain hunters stepped in and inspired by a poor FHFA housing price index reading of 0.0% (cons. 0.4%) bought gold back up past the initial GDP price level to touch $1200 once again. Falling to follow through yet again, gold fell back to $1196 where it began a gradual recovery through the afternoon, eventually rising to $1201.50 in the last hour of trading before finishing the day above $1200 at $1200.50. With the shortened week the data releases are more stuffed than a Holiday Turkey: 8:30am Durable Goods for October – cons. -0.5% 8:30am Jobless Claims – cons. 286K 8:30am Personal Income for October – cons. +0.4% 8:30am Consumer Spending for October – cons. +0.3% 9:45am Chicago PMI for November – cons. 63.2 9:55am Consumer Sentiment Index for November – cons. 90.0 10:00am New Home Sales for October – cons. 470K 10:00am Pending Home Sales for October – cons. +0.6% Michael Mikolay Disclaimer – Statements of news and current events on this web site, and financial, economic, political and market information on this web site (individually and collectively “Content”) are not intended to and do not constitute investment advice and are not intended to and do not constitute a prediction of the future course of the economy or the market for precious metals. The accuracy, completeness, adequacy or currency of the Content is not warranted or guaranteed in any way. Your use of Content on this web site or materials linked from this web site is at your own risk.
Posted on: Tue, 25 Nov 2014 23:36:49 +0000
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