Silver futures in the September contract are trading sharply lower for the 3rd consecutive session down another $0.60 at 14.45 an ounce and has now dropped about $1 over the last 3 trading days & as I have talked about in many previous blogs I have been very bearish the entire precious metal sector including silver as prices have now hit a 2 ½ year low.
Silver futures in the September contract settled last Friday in New York at 15.46 an ounce while currently trading at 15.40 down slightly for the trading week still stuck in a tight 4 week consolidation.
Gold futures failed an attempt at a third straight gain Thursday, as the latest round of economic data on jobs and inflation offered little to dissuade investors from buying assets perceived as risky over haven gold.
The positioning in Gold is almost as constructive as it was in December 2015 and early January 2016. Gold subsequently rallied from $1,060 in December 2015 to $1,365 in July 2016, a rally of 28% in less than 8 months.
Gold futures in the August contract is trading lower for the 4th consecutive trading session down another $2 at 1,225 an ounce continuing with its bearish momentum as I've talked about this market for quite some time as I still remain bearish as I think there's a lot of room to run to the downside as 1,200 is in the cards possibly this week.
The entire group is suffering due to ideas that we will not see inflation. Stocks continue to rise and once tariff mania wilts into the background and the stock market keeps climbing, traders will start to believe what they see and not what the financial "opinion" shows keep incorrectly telling them.
Gold suffered for back-to-back losses Wednesday, dragged lower as trade tensions between the U.S. and China intensified, raising concerns over demand for industrial metals and sending copper prices to their lowest finish in almost a year.
Coffee futures in the September contract are currently trading lower by 135 points at 113.40 a pound reversing some of the gains that we witnessed over the last couple of trading sessions as the volatility certainly has come back to life for the 1st time in months.
Gold and silver have come back strong as funds and stock traders have realized that the tariffs are good for the U.S. in the long run and stocks have broken through most resistance levels and may keep going all the way to contract highs in the coming weeks.