Originally published by Chamber of Merchants
Good morning everyone.
I’m travelling today so I’m posting from my mobile phone. Nothing major occurred so this will be brief.
Last night we had a major rally in Gold and Silver. The Federal Rederve members have two speeches in which they stated that the market should expect this low interest rate environment for another 2 to 3 years. This is great for Gold.
In fact if you check my Twitter feed, you’d notice that gold actually hit $1272 last night. However, given a slightly better than expected Purchasing Manager’s Index the US Dollar attempted to rally again which brought Gold and Silver back to yesterday’s level.
So in fact , for now, there is no change. It was awesome to witness a rally of $7 dollars in a two minute span, but as easily as it came, so it also went.
However, it is important to note that $1262 +~ has been a very strong support. Essentially it means that when we reaching that level money starts to flow into gold. There appears to be a strong accumulation. But the catalyst for the rally will be the falling dollar and it appears that we will have to wait until then.
Keep your eye on Euro Central Bank President Draghi’s speech today. Any strength in the Euro will be good for Gold, since it will destabilise the US Dollar strength.
As for the portfolio. I’m satisfied with all the positions currently and no changes are necessary.