A Gold Moment: October 31, 2014
Gold is under pressure from falling commodity prices. Or commodity prices are falling due to strong USD. Or an expectation of higher rates to come after the FOMC statement and strong GDP figure has strengthened the USD and weakened all commodities. The latter is likely the best description to what is happening. A sign of speculative bearish pressure in gold is that open interest on the Comex has been steadily climbing the past few days as prices were under pressure. US real rates have not rebounded and are so close to zero that they leave a chance for negative short term rates. Clearly fund managers will have their eyes on any such move to reverse this bearish stance. Until then, the trend is their friend.
Technically, the 1180 triple bottom broke this morning and found stops large enough to take it down to 1167. Short term intraday charts show oversold but the daily has a bit more room. Support below the current low should be seen at 1156 and 1148. Upside resistance rests at 1186, 1195 and 1204.
ETF: GLD Deposits: 741.20 tonnes -1.20
Comex GC O.I.: 419,455 +5045
ETF: SLV Deposits: 10,681.42 tonnes unch
Comex SI O.I.: 176,444 +2711