A Gold Moment
April 16, 2014
Yesterday’s Comex volume had the largest volume in over a week. This came as some traders liquidated positions and others reversed positions in a steep decline. This decline that started in early Asian trading hours accelerated as the Comex opened and CPI was released. Some looked to the World Gold Council’s tepid expectations for China gold demand for 2014 as a large catalyst, but the negative price reaction to the higher than expected CPI and core CPI numbers betrayed the economic focus that has been dominating the gold trader’s desks. Today’s economic figures will certainly add more perspective as well as the slew of Fed president speeches on the roster. The housing starts and building permits will be the primary triggers.
Technically, charts are back into mixed signal territory with a slight nod to the bears. A spot gold close above 1312 would be needed today for any hopes for bullish action. On the other hand sell stops should be expected near the 1289 level and could deliver a test of 1275.
ETF: GLD Deposits: 806.82 tonnes +0.60
Comex GC O.I. : 369,477 +5426
ETF: SLV Deposits: 10,228.97 tonnes unch
Comex SI O.I.: 163,724 -1845