Gold closed the week with a slight gain while Silver also closed higher. Today, the metals pushed higher thanks to disappointing manufacturing and bank lending data from China, which reinforced the need for further policy easing. ECB head Mario Draghi’s comments and reaffirmations have helped put a floor under Europe which also strengthened the case for precious metals. Meanwhile, the market rallied this week despite no new Fed action. We should also note that current open interest in Gold is at a multi-year low. This reflects an absence of bullishness which was last seen a year ago.
Technically, we continue to watch the resistance level of $1625.
Silver has resistance from $28.00-$28.25. A break above resistance would take the market to $29.50.
GDX was up 0.65% today and 4.65% for the week, GDXJ advanced 0.20% today and 4.67% for the week while SIL lost 0.40% today but gained 5.9% for the week. The best performing stocks today were:
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