PM Daily Market Commentary - 1/27/2014

By davefairtex on Tue, Jan 28, 2014 - 12:36am

Gold closed down -12.40 to 1256.40 on heavy volume, silver down -0.23 to 19.67 on moderate volume.  Gold/silver ratio rose +0.10 to 63.86.  Soon after the open in Asia (1850 EST - Sunday night), gold hit a cycle high of 1279.80 stopping out a modest number of shorts, after which it sold off steadily all day long.  Silver followed a similar pattern.

The USD traded sideways today in a narrow range, up +0.02 to 80.57.  After the big drop last Thursday, the buck seems to be in a wait and see mode.

GDX closed down -3.30% on moderately heavy volume; GDXJ was down -5.24% on extremely heavy volume.  Mining shares opened modestly down, and then proceeded to sell off all day long, right into the close.  There were no bids in mining shares today.  Distribution over the past few days in GDXJ was our clue - once the big guys distribute, prices often end up dropping afterwards.  New longs that bought the highs panic out, and it is probably best for us to wait until we see signs that the big guys are re-acquiring their positions at lower levels before trying to buy the dip.

One support level to watch for dip-buying is the 50 day MA.  It should act as support for both gold and the mining shares - it would be a logical place for the big guys to pick up some new positions in preparation for the next leg up.  Assuming the uptrend remains in place, of course.  A close below the 50 MA would be a bearish sign.

Two days from now at 14:00 on Wednesday, the Fed will release its meeting notes, which will no doubt move the market.  Various pundits I read suggest tapering will continue, but will they try anything new to staunch the flow of money pouring from the equity market?



sand_puppy's picture
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 2074
Glenn Beck taking Re-hypothecation and Scarcity public

I was quite impressed by this 20 minute clip on Glenn Beck' show where he talks about the efforts of Germany to repatriate their gold.  The refusal of the FED to allow Germany to inspect "their" gold being held in FED vaults and the delays and recasting of the gold that they are repatriating.

The recasting smacks of an effort to hide the fractional reserve nature of the gold world.

Though there is little that will surprise this group on this video, the fact that it is playing to the public ear is part of a shifting public understanding of how the secretive system of financial insiders works.

Oliveoilguy's picture
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Joined: Jun 29 2012
Posts: 578
Thanks Sand_ Puppy

It's encouraging to see this info going mainstream. Beck has his place as a teacher for certain groups of people. He might be a good supplement to public school curriculum.            .

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