Precious Metals Recap 2/9/09
Source: GoldSeek (2/9/09)
"The gold market started out. . .and remained under pressure as a result of what seemed to be a lingering hope that the U.S. was poised to move on its stimulus package."
March Silver finished down 0.33 at 12.83, 0.165 off the high and 0.01 up from the low.
The gold market started out under pressure and remained under pressure as a result of what seemed to be a lingering hope that the U.S. was poised to move on its stimulus package. It also seemed as if the gold market was being undermined by anticipation of progress on the U.S. financial sector bailout. In short, the ebb and flow of flight to quality seemed to favor the bear camp on Monday and that was somewhat surprising considering that the dollar managed a downside breakout on the charts. Even a noted rally in the energy complex failed to lend gold support and that prompted some traders to suggest that gold was simply correcting an overbought technical condition.
The silver market was unable to carve out a higher high for the move on Monday, but the market generally held within striking distance of the recent highs. With weakness throughout the metals complex it is possible that silver was also correcting part of the overbought condition registered in latest COT report. The silver market almost seemed to discount the latest talk of inflows into gold and silver funds, perhaps because the trade was unwilling to make fresh buys ahead of potentially significant upcoming developments from Washington.