Metals With McGuirk: Gold Levels Out
...should see some good support due to the resistance on the way up.
G'day. The metals are down some in Asia and Europe with gold down to $488 which should see some good support due to the resistance on the way up. $485 looks like good buying says Roscoe. Further support at $482 would be expected. I mentioned last week that buying some $475 one month put options on a gold price spike looked attractive. I suspect that a break of $475 (Why? Buggered if I know) may see some capitulation selling and down to the mid-50's could be on the cards in quick time. Again, I would caution that any dips will be steep but short in duration, IMO. Same reason as always- the physical market will suck up heaps of metal at lower prices.
Silver could see $7.95 after initial support in the $8.02-05 area. Levels I think may be significant are $7.82 and 7.66 on the low side and $8.22 and 8.39 on the top.
The share price action was somewhat peculiar yesterday with all the major producers nicely in the green. Interestingly, the midsized producers were all down and by more than a percent and may be signaling a pullback in the metal itself. I see the Placer (PDG) - Barrick (ABX) deal has taken a turn. Newmont (NEM) had better get a good grip on Placer's hedge book, which they would inherit, if any such deal were to come to fruition. Hmmm.
I think I have harped on this plenty over the past few years. Reserve replenishment is at the forefront of the "big boy's" strategies. More of this stuff to come, I'm sure.
Lots on and gotta shake a leg
Enjoy the day
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