PM Daily Market Commentary - 3/5/2014

davefairtex
By davefairtex on Thu, Mar 6, 2014 - 12:42am

Gold closed up +2.40 to 1336.80 on light volume - silver was up +0.02 to 21.19 on very light volume.  Today was a big ho-hum, with PM trading sideways in a tight range, seemingly in a holding pattern.  There was no rally off yesterday's selloff, which is unfortunate, but neither was there any continuation of the move lower.

The USD moved down -0.03 [-0.04%] to 80.14, printing a doji on the day.  The dollar too went nowhere.

GDX had a solid rally, up +1.53% on relatively light volume; GDXJ was up +1.79% on moderate volume.  Senior miners rallied within their consolidation zones - which I interpret as generally bullish, since gold itself didn't really move much.  GDX:$GOLD ratio may be hinting that a miner breakout is in the offing.  Look at this chart:

It is usually a good sign when miners are rallying harder than gold.

The commodity index $CCI rallied again, up only modestly +0.21%.  Likely commodities had a harder time than usual since oil was off -2.37% - a big move - closing right around 100.

Equities looked a bit tired after yesterday's rally - they closed flat.

Tomorrow we get Jobless Claims at 0830, and on Friday at 0830 we get the monthly Nonfarm Payrolls report - one of my Big Four indicators on the health of the US economy.  As always its the market's reaction rather than the news itself that matters.

 

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