Global quantitative easing headlines push metals upwards
Even with equities trading higher, the precious metals have been able to catch bids over the last several days on the heels of several quantitative easing headlines. Incoming Bank of Japan Governor Kuroda stated he will “do whatever he can” to finally trump the country’s fifteen year long endemic of deflation. This would be remedied by forceful asset purchasing by the state. In the late US session yesterday, Federal Reserve Vice-Chairman Janet Yellen said that the central bank’s aggressive monetary stimulus is warranted given that the economy is operating below its full potential. She hinted that the Fed’s course should remain unabated since the alternative would cause further economic malaise. Both of these stories allowed for equities to scream higher and the Dow is currently making all time highs. Gold’s move higher from here is being mitigated by crudes inability to push upwards through its 100 day moving average of $90.84. Crude oil, the most widely watched commodity and by far the biggest market in the commodity realm, has fallen over 8% in the last three weeks. It needs to move above its 100 DMA in order to galvanize traders to buy crude which in turn would spill over to gold. Platinum has found short term support over the last three days ahead of its 200 day moving average at $1,555.50. It rallied today to psychological resistance at $1,600 but it has since retreated.
