Gold Continues to Hover Near $1600
As the fallout from the Cyprus deal continues to settle into the markets and we approach the end of the month, Gold is caught in a crosswind between the obvious demand in the physical market and the needs of the futures market to maintain order, given the unbalanced nature of the COT report at last guess.Â Â We are seeing a lot of selling in the European sessions now coming into the COMEX open and buying is coming in to support the price after the market open.Â Now that the April delivery contract is winding down we will see a desire to keep precious metals prices under wraps and dampen physical delivery.Â It’s all part of the game, folks.
I would simply get used to it.Â For this week gold now looks vulnerable to the downside having violated last week’s low. There is nothing working in its favor currently as sentiment is still cautious/bearish and it looks like we are being set up for another tight daily trading range below $1616.Â That has to fall this week or there will be another attempt to jam the price back towards $1550 again.
Silver is in a similar position as it is bottom bouncing between $28.50 and $29.10.Â I am still looking for a weekly close above $29.35 to confirm the bulls have their priorities in order otherwise this will continue into April.
As we approach the end of this week I want to remind everyone that Thursday is not only a weekly close but a monthly and quarterly one as well, thanks to the markets being closed on Good Friday.Â So, with the trifecta of Initial Jobless Claims, Q1 GDP and Continuing Jobless Claims coming from the U.S. it’s going to be a mess and will have huge implications for the next few months.