PM Daily Market Commentary - 5/5/2014

By davefairtex on Mon, May 5, 2014 - 11:31pm

Gold was up +8.80 to 1309.50 on moderate volume; silver was up +0.09 to 19.61 on light volume.  Gold spiked higher in early asia trading eventually making a new high to 1315; silver followed but was not nearly as enthusiastic.  Gold managed to push above its 200 day MA, while silver closed right at its 20 EMA, not quite able to push through.

The dollar closed almost flat, -0.01 to 79.55, and traded in a very narrow range today.

The miners opened up because of gold's rally that happened prior to the NY open, and then the miners proceeded to sell off; GDX was up +0.37% on light volume, and GDXJ rose +1.20% also on light volume.  The miners did not seem to be particularly inspired by gold's rally.  That's not a good sign.

Gold was the most positive instrument in PM today; it continued moving higher from Friday's rally, quite possibly due to increasing trouble in the Ukraine.  Everything else was really quite lackluster; low volume, no buyers showing up, and so on.  My sense is, gold does have some sort of a safe haven bid right now, but the rest of the PM complex is being dragged behind gold kicking & screaming.  Or - maybe dragged along, yawning with boredom, its hard to say.  If my thesis is correct, if peace breaks out, it probably won't lead to anything good for PM.

The US equity market opened down 14 points, and then rallied for the rest of the day, closing up +3.5 to 1885, a bare 6 points away from yet another all time high.  Volume was light.  Dip buyers win again.


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