PM Daily Market Commentary - 7/28/2014

By davefairtex on Tue, Jul 29, 2014 - 3:18am

Gold closed off -4.50 to 1304.00 on moderately heavy volume, while silver was off -0.17 to 20.62 on moderately light volume.   Both gold and silver traded lower, with gold looking substantially stronger than silver by end of day.  Gold looked to have good intraday support around 1302.

The USD dropped slightly, off -0.02 to 81.12.  With an RSI(7) value of 85, the dollar has gone up steadily for quite some time now, and is most probably due for a break.  Things move in cycles, and even in a steady uptrend, there is some ebb and flow.

GDX surprisingly climbed +0.68% on light volume, while GDXJ was up +1.47% on moderately heavy volume.  When GDX and GDXJ both climb on the same day gold drops, it is a curious (and bullish) thing to see.  There is a clear bid under the mining shares.  The move today in the miners pushed the ratio GDX:$GOLD to a new high and moved GDXJ:GDX back into bullish territory.  There is only good news here for PM.

SPX had an early-morning selloff that pushed it below its 20 EMA again, but buy-the dip once again appeared and pushed the index into positive territory by early afternoon, with the index eventually closing +1 to 1979.  The VIX has been steadily climbing this past week; it closed off -0.13 to 12.56.  Traders are starting to get nervous about something.

Long term treasuries (TLT) dropped slightly, off -0.14%, but remains quite close to the recent cycle high.

Brent crude was down -0.82 to 107.57, remaining within its 107-108.50 trading range.


1 Comment

davefairtex's picture
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5740
FOMC 2-day meeting starts today

The FOMC is having its every-six-weeks meeting starting today, and ending tomorrow with the usual rate decision and policy release at 1400 EDT.  No press conference.

Also, there is a 2Q GDP (first estimate) release from the BEA at 0830 EDT; concensus estimates are for a +3.0% rise in the GDP for Q2.

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