Amark’s Bullion Update

After two days of gains, gold and silver have headed back down again in today’s trading session.  Gold’s upward momentum was held in check with a headline out today that the US Senate will advance the budget agreement.  With the FOMC tomorrow, the progress on the budget agreement has increased the odds of tapering.  As such, speculative bids have evaporated.  Gold’s descent has also carried over to platinum and palladium which are both nearing fairly important support levels.  Platinum will look to hold above $1,340, a double bottom and the six month low.  Palladium is trying to stay afloat above psychological support at $700.  For gold, overhead resistance looms at $1,250 while major support below is coming in at the three year low of $1,180.  Considering that gold ETF holdings have slipped below 58,000,000 ounces for the first time in four years, the risk still appears to be to the downside for the yellow metal.

About Fraser

Fraser Moncure is a Precious Metals Trader for A-Mark Precious Metals. He writes a bi-weekly bullion report as he sees it from the inside of the industry.

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