Gold has stopped sliding

Silver just can’t get a break as margins were raised yet again Fridays essentially putting a nail in the coffin. The white metal seems exhausted after its biggest one week drop since the 1980s over 30% and it is still lower today but now this sell off appears to be overdone.

But don’t expect any great recovery soon as the higher margins combined with the bloodshed of recent days have left many of the would be supporters of the market licking their wounds. On the flip side we had a very positive Non Farm Payroll report this morning which has boosted the rest of the group. This positive number is fundamentally bullish for the Auto Industry which is being reflected in the higher price of both Pt and Pd.

Gold has stopped sliding, which reached as low as 1460, and with no ECB rate hike due out until July and inflation expected both in Euro Zone and USA we can expect it continue to trade higher for the near term. The one good news for us regular folk is that in this commodities collapse Crude Oil has come off and is now below $100, maybe the gas pumps will reflect that this weekend.