Morning Gold & Silver Market Report ? 8/28/2013

GOLD HITS 3 MONTH HIGH ON SYRIA NEWS

The Gold price is continuing its rally this morning, topping $1,430 per ounce for the first time since May.  Concerns over the situation in Syria appear to be the main catalyst of this rally. Historically, Gold is viewed as a safe haven in times of geopolitical tension. The U.S. and its allies have told Syrian opposition that a military response could be expected after last week?s chemical weapons attack. The Gold price is up nearly eight percent in August, which is its biggest one-month rise since January 2012.

PIMCO chief executive officer Mohamed El-Erian  called himself a ?worrywart? in an essay written this week, listing a number of reasons why he continues to worry about the U.S. economy post-Lehman Brothers. Among those reasons, he mentioned that Western economies continue to struggle with jobs and growth, politicians are extremely passive (such as the U.S. Congress not passing an annual budget), and the bankers that caused the 2008 financial meltdown have not been forced to change their ways.

At 9 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,429.80, Up $7.60.
• Silver, $24.91, Up $0.20.

Gold Trades into June High and Channel Resistance

Daily

Chart  Prepared by Jamie Saettele, CMT 

Commodity  Analysis: ?Gold  has broken through the zone of consolidation that took place in mid-June and a confluence of trendlines. Focus now shifts to the June high at 1424.? 1424 has been reached and channel resistance is just above.

Commodity Trading Strategy: At resistance so would be looking for signs of a top up here. Would look for support at recent congestion in the 1370s.

LEVELS: 1352 1369 1389 1424 1440 1488

Closing Gold & Silver Market Report ? 8/27/2013

POSSIBLE SYRIAN INCURSION CAUSES MARKET TURBULENCE

Gold is set to end Tuesday higher as investors flocked to the yellow metal?s safe haven appeal on fears of U.S. military intervention in Syria.  According to Comex charting data, today?s 2 percent surge formally shifted  Gold back into a bullish market.  ?Gold will be a beneficiary of any military action in Syria,? said Paul Herber, portfolio manager of the Forward Commodity Long/Short Strategy Fund.  He added, ?Investors are selling equities and moving into safer assets ... of which Gold is one.?    APMEX chief executive officer, Michael Haynes, noted the ?rhetoric around the increase in the debt ceiling and the implied threat that this debate will erupt into? as another factor pushing Gold into bull territory.  ?The Gold markets appear to be looking for reasons to go higher and we have these ?ignition points? at the moment,? Haynes continued. ?As we move past the Syrian threat and into the U.S. debt/budget discussion in September, which has longer term impact, the call on the bull market will be more evident.?

U.S. stocks experienced their largest single-session slide since June as the possible Western military foray into Syria weighed heavily on investor sentiment. ?This (stocks) move is as much about the potential spillover effect in the region as it is the potential for a U.S. strike,? BNY Mellon Wealth Management chief investment officer Leo Grohowski said.  Markets have already been acting erratically ahead of anxiety surrounding the expected taper of monetary stimulus measures that have helped lift equities to record highs.  Today?s dip has analysts and economists forecasting potentially  weak short-term momentum as the S& P 500 fell below its 100-day moving average for the first time since late June. 

At 5:07 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,417.40, Up $22.30.
• Silver, $24.56, Up $0.49.

Morning Gold & Silver Market Report ? 8/27/2013

MARKET?S MAIN CONCERN: SYRIA

Gold and Silver prices are trading approximately two percent higher in early-morning trading afterconcerns over the unrest in Syria  and confusion over quantitative easing tapering in the U.S. sent stock futures lower.  Monday, U.S. Secretary of State John Kerry condemned the chemical weapon use by the Syrian government as a ?moral obscenity.?  Nick Lewis of London Capital Group explained, ?Syria has taken over the mantle of market concern.  The increasing political pressure in the States to intervene led U.S. markets lower, and Europe is following.?

Marketwatch?s Michael Gayed believes that Gold?s recent price movements are  calling the U.S. Federal Reserve?s bluff  regarding potential tapering.  He wrote, ?The fact that Gold is starting to outperform strongly into the September Fed meeting may mean bets are rising that the Fed will not rock the boat, but instead re-adjust crowd mentality away from cutting back on bond buying. Perception-wise, then, this may mean Gold's strength is anticipating a reversal in yields, more money printing, and another bout of stimulus.?

At 9 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,422.80, Up $27.60.
• Silver, $24.71, Up $0.64.

• Related Topics
• Metals and Mining
• Precious Metals
• Gold Prices

Washington warns Assad on 'undeniable' chemical attack

WASHINGTON/BEIRUT - The United States put Syrian President Bashar al-Assad on notice on Monday that it believes he was responsible for using chemical weapons against civilians last week in what Secretary of State John Kerry called a " moral obscenity."   Full  Article 

Gold Spot Price: Peaking Briefly above $1,400

Gold Breaks Through 1400 June High at 1424

Daily

Chart  Prepared by Jamie Saettele, CMT 

Commodity  Analysis:  Gold  has broken through the zone of consolidation that took place in mid-June and a confluence of trendlines. Focus now shifts to the June high at 1424.

Commodity Trading Strategy: Need a pullback from if want to participate on the long side. Look for a higher low above 1352. 1380-90 is now support.

LEVELS: 1352 1369 1389 1424 1440 1488

Closing Gold & Silver Market Report ? 8/26/2013

GOLD AGAIN BULLISH DEBT LIMIT NEEDS TO BE CONTAINED

Gold?s worldwide demand has held steady as the yellow metal is currently entering a bullish market after falling into a bear market earlier this year. The safe haven appeal is returning to Gold as the market has received mixed messages from the U.S. Federal Reserve and economic data. ?Physical demand is very strong, and that is lending support to prices, and we think it's time to increase our holdings,? Michael Mullaney, the Boston-based chief investment officer for Fiduciary Trust Co., said. ?The economy is improving, but there are some misses, which intensify the debate on tapering and increases demand for Gold as a safe-haven investment.?

The new concern looming over Congress is whether to allow the government to borrow additional funds before the U.S. defaults on its financial obligations in mid-October. ?Congress should act as soon as possible to protect America's good credit by extending normal borrowing authority well before any risk of default becomes imminent,? Treasury Secretary Jack Lew said in a letter to congressional leaders. The same scenario occurred in the summer of 2011 when Congress failed to reach an agreement and the U.S. credit rating was downgraded by S& P.

At 5:51p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,406.70, Up $8.90.
• Silver, $24.37, Up $0.58.

Morning Gold & Silver Market Recap ? 8/26/2013

GOLD ETF INFLOWS SHOW INCREASED DEMAND

The Gold price is trading flat this morning as investors wonder if the yellow metal can rack up another week of gains on continued inflows to Gold-backed exchange traded funds (ETFs).  According to Barclays analysts, the  influx to ETFs on Friday reached its highest level this year.  ?Flows for the month-to-date remain negative at 17 tonnes but the pace of outflows has showed signs of slowing as equity markets have weakened and prices have risen, meaning fewer ETPs [exchange-traded products] are loss-making,? Barclays said in a note on Monday.  As markets remain fragile ahead of stimulus taper anticipation, much of the recent price rally is due to short covering while the Commodity Futures Trading Commission also showed a multitude of new long positions, helping boost the price.

European stocks are down as U.S. stock futures gave up early gains ahead of ongoing anxiety surrounding central bank stimulus plans.  Domestic durable-goods data is expected to come in lower for the first time in a month today, which  would weigh on the minds of U.S. Federal Reserve officials  as they consider the schedule for scaling back U.S. monetary stimulus measures. ?On the one hand you want to see an improvement in the economy but if does improve too much, tapering is back on the agenda,? Vontobel Asset Management head of equity and commodity strategy Andreas Nigg said. ?This is a dilemma for the markets. The best scenario is moderate growth. Durable goods numbers can be volatile and fluctuate a lot.?

At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,398.00, Up $0.20.
• Silver, $24.25, Up $0.45.