21:28
Unknown
A Wild Horse
Thursday November 06, 2014 18:02
Editor's Note: Technical expert and star of Kitco's popular show Chart This!, Gary Wagner will now provide Kitco.com visitors with an exclusive evening recap Monday to Thursday at 6:00 p.m. EST. The commentary, called Hawaii Six-O, will provide a brief overview of the day's news as it relates to gold. A former city guy, Gary abandoned the briefcase and tie, and joins us now daily from his home in Hawaii. Whether you are a newbie or veteran trader, Gary provides a great overview for all levels of investors.
Although there were gold buyers a-plenty today, they were fighting an uphill battle against an implacable, rampaging foe. The dollar has become an untamable wild horse, rampaging here and there without effective resistance.
The trot turned into a full-scale gallop after the Japanese announced their form of quantitative easing only two weeks ago. For a while, the yen had been serving as a junior reserve currency in its stable, slow but steady growth homeland.
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Nevertheless, the bargain hunters and fast-turnaround traders made a buck today even with the soaring dollar. (In late afternoon gold is up only 70 cents.)
The dollar's strength has another path to weigh on gold prices - any dollar denominated commodity is going to feel pressure when the dollar rises. This has kept gold sliding. The trading is best for those with dollar accounts. The rest have a cold drink and watch from the sidelines. Or, they head for the equities, which many are doing, as we know.
Risk off is the dominant trend. It's inescapable right now.
There was another overtone to the precious metals today. Tomorrow, Friday, the Labor Department will issue its October employment report. This put trading into a subdued mode, not that anyone is expecting any drastic surprises. As we noted yesterday, private job watcher ADP said 230,000 new jobs were created in October.
"We're holding steady today but nobody wants to make a big move ahead of the employment numbers tomorrow morning. If there's a positive number, they (the bears) may take a run at it," said Paul Sacks, principal gold trader at New York's Aurum Options Strategies.
Wishing you as always, good trading,
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