Precious metals traders should ignore the interest rate hike view and focus on key short-term support. Central banks are buying physical gold every day.
Gold weakened after robust U.S. labor market data strengthened the dollar and Treasury yields. However, the yellow metal remains resilient compared to other precious metals.
In the metals market, Ira Epstein observes quiet trading with low volume and analyzes the Japanese yen's recent movements, while noting the bullish trends in gold.
Gold prices were not happy as the larger-than-expected job numbers took a bite. But, make no mistake, gold prices and by extension silver prices and the gold stocks are headed higher.
Looking to the Federal Reserve, the countdown to the Open Market Committee’s next Policy Statement is just seven trading days (16 September), within which we’ll next week get both wholesale and retail inflation data for August.
Silver has remained very resilient relative to its dominant primary driver gold in recent months, trading at its best levels in over a dozen years. Silver apathy and bearishness lately has been myopic and misplaced.
