PM Daily Market Commentary – 3/25/2014
Gold closed up +2.40 to 1311.40 on heavy volume; silver was up +0.04 to 19.98 on moderate volume. Gold traded in a relatively narrow range today, dropping to 1306 at one point but rallying back to just above where it started. Silver tried to rally but largely failed. Gold remains above its 50 day MA, and the 50 MA crossed its 200 day MA today – the long awaited "golden cross", which is just about the only bullish sign we have in PM these days.
Today the COMEX gold buyers showed up at 1306, but not enough of them to push gold meaningfully higher. It feels like the momentum is still downhill for PM.
The dollar tried rising above its 50 day MA again, and it failed again, closing up +0.03 at 80.09. For the past three days, the dollar has been tracking sideways, neither helping nor harming PM.
GDX rallied +0.64% on heavy volume; GDXJ was up +2.15% on heavy volume as well. That sounds good, but the up-day volume today was basically 2/3 of the down day volume yesterday, and the chart candlestick pattern was a "bearish engulfing" candle – meaning the very modest rally today after the big drop yesterday was a bearish pattern.
In one bit of good news, copper managed to rally, closing up +0.05 to 2.99. It broke above 3 briefly but it could not hold. Still, if it keeps rising, it will eventually help silver to come back from the dead. Likewise, the commodity index was up slightly, closing up +0.25%.