PM Daily Market Commentary - 1/16/2014

By davefairtex on Fri, Jan 17, 2014 - 12:16am

Gold closed up +0.90 to 1242.20 on moderate volume, silver dropped -0.11 to 20.08 also on moderate volume.  The gold/silver ratio moved up +0.37 to 61.85.  Gold traded in a narrow ($8) range most of the day, while silver moved mostly sideways with a bias downhill.  The Nonfarm Payrolls number was in-line with expectations, as was December inflation.

The USD moved down -0.11 [-0.14%] closing at 81.01, with the buck dropping at 0830 EST (NFP report release time) to 80.87 but then rallying back after a manufacturing survey release at 1000 came in with relatively happy news.  The buck is still in no-mans-land, between its dropping 200 MA and its rising 50 MA, trying to decide where it wants to go.

GDX opened up, and traded in a relatively narrow range all day long, closing up +1.03% on light volume.  GDXJ did slightly better, up +1.38% on moderately heavy volume.  Both GDX and GDXJ continue to look good during a ho-hum day for PM in general.  There are no fireworks, but miners seem content to just move steadily upwards - although the volume for GDX is quite low so reading too much into the action is likely unwise.

Two of the three ratios I watch: GDX:$GOLD, GDXJ:GDX are continuing to look bullish.  Gold/silver ratio is chopping sideways, looking for direction.

In truth, not much happened today, except the miners continued to look strong relative to the rest of the PM complex.

Premiums in Shanghai remain relatively elevated, +11.30 over COMEX, ahead of China's new year holiday.  2014 will be the Year of the Horse which starts January 31st.  I think its supposed to be good luck to buy gold for Chinese New Year.  I certainly think I'd consider it to be good luck if I received some gold as a gift...a nice 24kt gold horse, for example.  Even a gold-foil-wrapped chocolate horse would do.  [Yes, its a slow news day]

Coming Soon: the January FOMC meeting - January 29th.  Get ready Fed fans, another Fed meeting!


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