A Golden Lull
Gold traders were searching for a sign of future prices through a slow news day and they were handed a gift with the housing numbers. The measure of house prices in the US released yesterday was just as expected, giving traders the confidence in a stable US economy that they were looking for. In addition to that, the reported drop in home sales was lower than expected despite a low inventory. These aren’t pretty numbers for a recovery after adjusting for expectations, but they show the stability that Yellen and Co. are working to establish. Gold prices slipped more than $10 following the numbers reflecting the stability of the USD and the strength of the US equity markets.
Ukraine received a visit from VP Biden. Since his meeting in Kiev, the anti-terror operations that fight against pro-Moscow gunman in the eastern region have escalated. The US has continued to demand that Russia ask that their supporters lay down their guns, while Russia declares they will defend their interests. This situation remains a regional conflict, but with the US sending some troops to Eastern Europe, international trouble could be lurking around the corner.
Technically, mixed signals remain with a potential for bulls to take charge if the low end of the consolidation range holds. That range remains between the 100 and 200 DMAs(1279 and 1300 respectively) despite the temporary break of the lower band yesterday morning. The upside will have a challenge with 1293 ahead of the 1300 level. An extended trading period above 1293 should invite buyers looking for a test of the 200dma. A close outside of the consolidation range should see continuation in the direction of the close.
ETF: GLD Deposits: 792.14 tonnes unch
Comex GC O.I. : 370,187 +1010
ETF: SLV Deposits: 10,282.78 tonnes unch
Comex SI O.I.: 160,315 -618