Monday July 29, 2013 08:39
Overnight, as the markets opened in the Far East, the initial impulse was a selling wave in the high $1,330's and it was met with short covering and physical demand in the low $1,320's. The range over the past five trading sessions has tightened by about $3.00 a day from the high/low point. This could prove to be the blow-out week with everything a trader, from a fundamental perspective, will be focused on; FOMC minutes, an EU rate policy release, a myriad of US and global financial numbers. Given the thin market, I would expect a catharsis week, that will break the market from its consolidation pattern. I suspect the status quo from the FOMC and EU releases as the market feels higher, but a momentum break above the recent $1,337 level is required. A stall again here will encourage the bears to try the downside, possibly with conviction.
By Peter Hug
Global Trading Director
Kitco Metals Inc.