Roy’s Commentary 3/21/2016

Following an overnight sell-off during the Asian trading session, gold continues to show weakness this morning as the sharp rally brought on by last week’s dovish FOMC statement on Wednesday has been short lived. While overall volume picked up throughout the week, which is always a good sign, physical demand was not enough to take on the speculators who bought on Wednesday but were content with taking a profit before the end of the week. Despite the increased buying from our corner of the market and the continued rise in the holdings of ETF’s, gold struggles to hold a rally as sellers emerge above $1,265.00, while buyers enter as we begin trading below $1,240.00.  In the short term, we are again faced with a tight trading range as witnessed by the 10 day average in gold at $1,252.60 being within a good days trading range of the 100 day average which currently stands at $1,134.00. Keep an eye on the gold silver ratio in the coming days which is currently trading around 79.00.  While silver failed to hold above $16.00 which was a bit disappointing, I continue to think the demand for silver which continues to be quite good will propel silver into a leadership role sooner than later and be the catalyst for a rally that sees silver testing $17.25 – $17.40.  A silver rally towards these levels likely brings the ratio back towards 75 but enables gold to test $1,300.00.

 ** Please note MTB will be closed on Friday, March 25 in observance of Good Friday ***

 

Disclaimer:  The content in this commentary is provided for informational and educational purposes only and all estimates and opinions included in this commentary are as of the date of the document and may be subject to change without notice.  It is not a solicitation or offer to make or enter into any sale, purchase or exchange of precious metal products. All items and prices listed are indications only.  Call for exact pricing and availability.  Subject to prior sale.  Neither MTB nor the author of this commentary make any representations or warranties about the accuracy or completeness of the information provided, and will not be responsible for the consequence of reliance upon any opinion or information contained herein or for omissions therefrom.  The precious metals market is random and highly volatile so it may not be suitable for some individuals.  MTB’s employees are not brokers, investment advisors or financial advisors.  MTB and its employees do not render legal, tax or investment advice.  All prospective investors should always consult with a broker or investment adviser before investing any money in precious metals