Zaner Spot Gold Report

Spot gold is modestly higher, building on Friday’s rebound. Thus far, Thursday’s high at 1353.20 remains intact, protecting last week’s high at 1365.26. This high further bolsters major resistance at 1366.08/1375.17.

Mounting expectations of an imminent U.S. strike on Syria last week drove gains late last week. British and French forces participated in the strikes as well, which came on Friday.

Gold’s reaction was muted, largely because the military action was well telegraphed. While Russia expressed its displeasure, there was no retaliation on their part. However, ongoing tensions should continue to underpin the yellow metal.

U.S. retail sales rose 0.6% in March, beating expectations of +0.4%. Ex-autos came in at +0.2%, in line with expectations. The NY Empire State index fell to 15.8 in April, below expectations of 18.6, versus 22.5 in March.

Tomorrow we’ll see March industrial production (expectations +0.4%). On Wednesday the Bank of Canada will announce policy. On Thursday we get March LEI (expectations +0.4%).

Silver is up more than a dime today, favoring a retest of last week’s 8-week high at 16.87. While silver remains confined to its well-established range, there is a slight bias toward buying strategies, encouraged by recent evidence of weakness in the gold/silver ratio.

Non-Reliance and Risk Disclosure: This opinions expressed here are for general information purposes only and should not be construed as a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Group LLC, unless otherwise expressly noted.