advertising banner for bullion vault

Gold Silver Market Report 27 March 2017

   SHARE THIS POST:

Precious Metals Market Report 
Monday 27 March, 2017 

main-270317

snapshot270317

Fundamentals and News

Despite The Rise In The Gold Price, Gold Speculators Did Something Very Strange Last Week

The gold price rose 3% during the last COT reporting period.

the gold forecast banner

Despite that large rise in the gold price, speculative longs only added a little over 17,000 contracts which is lower than we would have expected.

Surprisingly, speculative shorts added to their short positions during this large rise in the gold price which is very unusual.

Despite the rise in the net speculative long position, the historical net speculative position in gold remains low.

Speculative US Dollar traders added to their own net long position in the USD to the highest levels since January, which is USD-bearish and gold-positive for contrarians.

The latest Commitment of Traders (COT) report showed a decent increase in speculative long positions, which was expected due to this report’s inclusion of last week’s change in gold post Fed meeting. But surprisingly enough, this report showed that speculative shorts increased their positions despite the 3% rise in gold during the COT week.

That is a bit unusual as we tend to see speculative positions mirror the gold price (rising gold means rising longs and falling shorts), and that is especially the case on big (2%+) moves in the weekly gold price. The only times we usually see the opposite is when the net speculative position is at extremes like back in July of 2016 when the net speculative position was hovering at record levels – but at current levels we are actually at fairly low speculative net long levels.

We will get more into some of these details but before that let us give investors a quick overview into the COT report for those who are not familiar with it.
(*source Bloomberg)

Data – Forthcoming Release

forthcoming270317
 

Technical Outlook and Commentary: Gold

Gold for Spot delivery was closed at $1243.57 an ounce; with loss of $1.64 or -0.13 percent at 2.00 a.m. Dubai time closing, from its previous close of $1245.20

Spot Gold technically seems having resistance levels at 1251.3 and 1257.5 respectively, while the supports are seen at $1231.2 and 1225 respectively.

gold270317

Technical Outlook and Commentary: Silver

Silver for Spot delivery was closed at $17.76 an ounce; with gain of $0.18 or 0.23 percent at 2.00 a.m. Dubai time closing, from its previous close of $17.58

The Fibonacci levels on chart are showing resistance at $17.80 and $17.90 while the supports are seen at $17.45 and $ 17.35 respectively.

silver270317
 

Resistance and Support Levels

resistance270317
Indications only, open & closing prices are bids; data source: Bloomberg; important disclaimer below; Times as per Dubai

This analysis is also available at Kaloti Precious Metals SG
Kaloti Precious Metals (KPM) does not provide trading or investment advice to its customers. The information provided in this report constitutes market commentary only and KPM assumes no liability whatsoever for the accuracy and/or any use of the information contained in this report and expresses no solicitation to buy or sell OTC products, futures, or options on futures contracts. The Customer should not regard any views or opinions given in this report as being investment or trading advice KPMI shall have no liability whatsoever for any view or opinion expressed in the report. Reproduction of this report without authorization is forbidden. All rights reserved.

Bullion.Directory or anyone involved with Bullion.Directory will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading in precious metals. Bullion.Directory advises you to always consult with a qualified and registered specialist advisor before investing in precious metals.

prize draw details

Leave a Reply



  I accept your GDPR / Data Protection Policies