PM Daily Market Commentary – 3/5/2014
Gold closed up +2.40 to 1336.80 on light volume – silver was up +0.02 to 21.19 on very light volume. Today was a big ho-hum, with PM trading sideways in a tight range, seemingly in a holding pattern. There was no rally off yesterday's selloff, which is unfortunate, but neither was there any continuation of the move lower.
The USD moved down -0.03 [-0.04%] to 80.14, printing a doji on the day. The dollar too went nowhere.
GDX had a solid rally, up +1.53% on relatively light volume; GDXJ was up +1.79% on moderate volume. Senior miners rallied within their consolidation zones – which I interpret as generally bullish, since gold itself didn't really move much. GDX:$GOLD ratio may be hinting that a miner breakout is in the offing. Look at this chart:
It is usually a good sign when miners are rallying harder than gold.
The commodity index $CCI rallied again, up only modestly +0.21%. Likely commodities had a harder time than usual since oil was off -2.37% – a big move – closing right around 100.
Equities looked a bit tired after yesterday's rally – they closed flat.
Tomorrow we get Jobless Claims at 0830, and on Friday at 0830 we get the monthly Nonfarm Payrolls report – one of my Big Four indicators on the health of the US economy. As always its the market's reaction rather than the news itself that matters.