PM Daily Market Commentary - 7/22/2014

davefairtex
By davefairtex on Wed, Jul 23, 2014 - 5:08am

Gold closed down -4.60 to 1308.10 on moderate volume while silver was up +0.05 to 21.01 also on moderate volume.  There was some volatility in both gold and silver around the time of the US CPI report release at 0830 EDT (no change reported) which seemed to have a more positive effect on silver than gold.

The USD rallied strongly today, up +0.23 to 80.85, because of a decent-sized drop in the euro during London trading hours.  The euro dropped through 135 support to close at 134.66.   This is a pretty significant breakdown, and if the euro continues moving lower, it will pressure gold and it should encourage US dollar-denominated assets to move higher.

The miners had some difficulty today, with GDX off -1.15% on light volume, and GDXJ down a more serious -2.83% on moderately heavy volume.   Miners are still trading within a range, but looked weaker today, especially GDXJ.

SPX broke out to a new all time high today of 1986 but could not hold it through to the close, ending up +10 to 1984.  So much for the "weakness" I saw yesterday.  VIX dropped to 12.24.

Long term treasuries (TLT) continued higher, closing up +0.21%.  Money flowed into the US today: dollar up, treasuries up, SPX up.

Brent crude was down -0.35 to 107.33; it continues to track sideways in a range.

 

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