A Gold Moment: November 13, 2014
The gold price has had a little support from military moves by the Russians. In the midst of what will likely become a takeover of Ukraine, Moscow announced they will be conducting military exercises in the Gulf of Mexico. Mr. Putin knows the US will hesitate to make any moves to help Kiev while MIGs fly close to Texas. These moves by Putin have given the gold market some attention, but money managers remain focused on USD strength. Until things go negative, the low rate environment is also becoming acceptable for fund traders.
The World Gold Council has come out with its quarterly demand figures. These numbers are being studied carefully by the markets as they show lower measures for China than market analysts have recently been reviewing. Since Beijing shifted much of its gold trading to Shanghai, many analysts doubt the normal method of measuring China gold demand by looking at Hong Kong exports to the mainland, but it remains the only solid numbers that can be used.
Technically, consolidation inside last Thursday’s range has been the theme this week. 1141-1177 being the body of that range will be challenging to break in either direction. A close above the higher end of the range should see follow through to 1186 and 1209 resistance. The downside break would see 1136 and 1121 support.
ETF: GLD Deposits: 722.67 tonnes -2.69
Comex GC O.I.: 443,422 -422
ETF: SLV Deposits: 10,727.23 tonnes unch
Comex SI O.I.: 170,684 +333