Precious Metals Breaking Upwards
In illiquid trading conditions on the Friday immediately following Thanksgiving, gold was able to break out of its recent consolidation and closed above its 50 day moving average. This was technical resistance which had capped the market since the end of October. With this level now breached, it will now become short term support and has held up well so far as this week begins with gold trading quietly down. Silver ran up over 2.5% on Friday and there should be sizable offers waiting at $35. To the downside, the break out area from last week of $33.30 is an attractive spot to look to get long.
Overnight, European Union finance ministers, the ECB, and the IMF agreed on a deal for Greece. The beleaguered nation will receive 44 billion euros of financial aid which will supposedly bring its debt down to a sustainable level. Despite a three week run up in the euro, the market reacted bearishly to this news. The euro failed to hold above 1.30 and has sold off as market participants become increasingly disenchanted with these headlines regarding Greek bailout packages.
Looking towards the remainder of the week, crude oil inventories are out tomorrow at 10:30 AM EST and unemployment claims should create some excitement on Thursday at 8:30 AM EST.
