What Will The Precious Metals Do This Week ?
Precious Metal Futures--- Precious metal futures this week were slammed on several bearish economic indicators such as lowering the GDP by the federal reserve as well as major problems existing in Europe and in China causing global economic slowdowns pushing gold down $60 dollars for the week currently trading at 1,566 this Friday afternoon while silver futures were down for the third consecutive trading day another 15 cents at 26.71 down around $1.70 for the trading week also making new fresh lows continuing its bearish momentum. Copper futures plunged this week settling down about 1400 points in the July contract to trade currently around 329.50 on waning demand due to stagnant economies including our own. Platinum futures took it on the chin this week finishing down around $55 dollars currently trading at 1,435 also on able to escape the massive commodity selloff that took place yesterday as investors flee out of hard assets and stocks. The Federal Reserve came out couple of days ago and stated they will continue to do the twist program which is selling short-term treasuries and buying long-term treasuries however it was construed as not enough so traders sold stocks and commodities dramatically hoping that the fed were doing QE3 instead of the twist program which many traders and economists think will have very little impact. The precious metals in my opinion look very weak although they have not had a solid trend except for silver which looks like it's going to retest the $23 – $24 level in my opinion however gold, copper, and platinum are still in a choppy market and I still advise to sit on the sidelines and wait to see if new lows are broken. The currency market this week had a big impact on the prices of the precious metals sending them sharply lower due to the fact that the U.S dollar surged against the Euro currency especially in Thursday's trading session causing a sharp selloff across the board in stocks and commodities as investors were seeking the safe haven of the U.S dollar and selling all other assets. The next major support area and gold is $1,535 – $1,545 if that level is broken I think you could retest the low 1,500s and possibly go as low as 1,450 however I do not see a total collapse in gold prices because there are too many uncertainties throughout the world and people are still going to buy gold and use it as a currency and as a hedge.
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