PM Daily Market Commentary - 11/19/2014

By davefairtex on Wed, Nov 19, 2014 - 11:01pm

Gold dropped -14.30 to 1182.50 on very heavy volume; silver was down -0.06 to 16.11 also on very heavy volume.  Gold was doing fine until 1030 EST, when it dropped $20 - perhaps it was driven lower by a story in the Daily Mail suggesting the Swiss Gold Referendum was now trailing in the polls.  Gold then rallied just as hard at 1200, and then dropped again at 1400 following the FOMC minutes release.  It was a volatile day, but it ended badly for gold.

Silver also was volatile, even making a new high at 16.53 for a few moments post FOMC minutes release, ended down, but managed to outperform gold.  That's a curious outcome.  Silver's outperformance lends a bit of credence to the thought that gold's issues today had to do with that referendum in Switzerland.

The USD rose today, climbing +0.11 to close at 87.74.  The USD experienced some volatility around the time of the FOMC minutes release, first dropping -0.30 and then rallying right back up again a few minutes later.  The Euro rallied modestly today, as did the pound - the big losses were in the Yen, which was down -0.88%.  The dropping Yen suggests money is fleeing Japan, heading for the dollar, among other places.

Mining shares sold off hard today, with GDX off -5.47% on very heavy volume; GDX dropped -7.14% on very heavy volume as well.  Price for both ETFs remain above their EMA-9, but both mining ETFs may have marked a high today.   While mining shares largely followed gold (down early, up at 1200, down again starting at 1400) they definitely looked weaker than gold, and the immense volume and the close at the day lows did not look good. 

SPX closed down -3.08 to 2048.72.  FOMC minutes didn't seem to affect equities that much.  VIX was up +0.10 to 13.96.

TLT dropped -0.64%, dropping but still remaining within its trading range - now for five weeks straight.  JNK fell -0.10%, down for the 5th straight day.  Although JNK is dropping, it isn't falling very quickly.

The commodity index was down -0.29%; it too may be forming a trading range and/or consolidation area.  WTIC closed up +0.13 to 74.34; it was up a full buck but couldn't hold onto its gains.  Brent dropped -0.37 to 78.10.

No inflation now, no inflation in sight, commodities bouncing around the lows, and now the miners are back to looking weak on very high volume.  That's a danger sign for me; the only happy note was that silver only dropped -0.06.

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1 Comment

Time2help's picture
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2903
Gold sucks, sell it.

Why now is a great time to sell gold

Central bankers are standing by to take that barbeque relish off of your hands.

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