PM Daily Market Commentary - 4/23/2014

By davefairtex on Thu, Apr 24, 2014 - 12:04am

Gold closed up +1.50 to 1284.60 on moderate volume, silver was up +0.06 to 19.45 on moderately heavy volume.  Both metals traded in a narrow range today, basically moving sideways on reasonably good volume.

The dollar was relatively volatile today but closed almost even, off -0.04 to 79.95.

GDX had another good day, this time up +2.02% on heavy volume.  GDX climbed steadily all day long, losing a bit in the last hour and a half but still keeping most of its gains.  GDXJ did even better, up +3.10% on very heavy volume.  The juniors are doing well while avoiding going vertical; the steady move up on increasing volume suggests to me that some decent sized players are trying to acquire positions without moving the market up too much.  It's all tea-leaf-reading though - we cannot know for sure.

The continued rallies in the ratios GDXJ:GDX as well as GDX:$GOLD are starting to push the ratios up into more bullish territory.  If this continues for another day or so, we'll be looking at a risk on signal for PM overall.

Now we just need gold to cooperate and start to rally and the reversal picture will be complete.

SPX had a rare down day, off a modest -4 points to 1875.  The more high risk items were off more, but not enough to signal a big sell-off, at least in my opinion.  Housing is having some trouble, with new home sales off 14% over last year, and housing-related stocks have done poorly for the past few months.


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