Monday August 26, 2013 08:46
This is purely guesswork as to the direction of the market this week. For the most part this is a four day week, as the final long weekend of the summer generally begins Friday morning. I suspect most of the new shorts have been squeezed out of their positions and the bulls may be very content to maintain these levels ahead of Labor Day. September will bring a new spate of economic numbers that will be dissected solely on the premise of when, if, by how much or will the Fed taper. There are some serious issues emerging in September which will set the tone for the balance of the year with debt ceiling debates, geopolitical tensions in the Middle East and potential serious supply disruptions from South African labor unrest taking center stage.
Technically the market remains constructive, with a break of $1,397 portending a move to $1,424. Hard stops should be considered at $1,377.
By Peter Hug
Global Trading Director
Kitco Metals Inc.