Gold Soft from NFP
The soft white underbelly of the gold market seemed to be exposed on Friday when the NFP number came out. Still considerably week at +175k, it was more than the general consensus. This gave the Fed’s taper crowd a loud voice to declare that plans would not be disrupted. This also occurred with a higher unemployment rate. The price drop was quick as usual. Comex volume was over 200k for the first time in a long time. This could have signaled a turnaround in sentiment, but preliminary numbers suggest open interest did not lose even 10% of the week’s gains.
The Ukraine seems to have left the front burner of consideration of traders. At least that is how news reports made it seem. Combined with the low change in open interest on the Comex was a growth of 1.5 tonnes of gold in the GLD ETF. Longer term investors may be looking to hold onto something that would have positive reactions to negative activity.
Chinese inflation is being reported as lower than expected. It will be interesting to see how the Chinese gold buying public treats this news.
Technically, mixed signals in all time frames will keep spot gold from moving too far. The downside continues to see support at 1222, 1214 and 1208. The upside resistance should be found at 1336, 1342, 1351.
ETF: GLD Deposits: 805.20 tonnes +1.50
Comex GC O.I. : 407,696 +9291
ETF: SLV Deposits: 10,164.47 tonnes unch
Comex SI O.I.: 135,450 +1880