PM Daily Market Commentary - 3/5/2014

By davefairtex on Wed, Mar 5, 2014 - 11:42pm

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.


Login or Register to post comments