Tuesday, September 30, 2014

Gold, Silver Resume Decline

December gold $1207.40 down $11.40, silver $17.205 down 36.2 cents.
We continue to believe the collapse in precious is the highest probability trade you'll find and that silver is the easier call of the two.
From Reuters:
Gold set for first quarterly loss this year on dollar strength
Gold fell on Tuesday, as the dollar and European stocks climbed, with the metal set to post its sharpest monthly loss since June 2013 and the first quarterly loss this year on expectations of further gains in the U.S. currency.

Gold is down about 5.5 percent for the month and not far from a nine-month low of $1,206.85 hit last week. It was headed for a quarterly drop of nine percent.

Spot gold was down 0.5 percent at $1,209.40 an ounce by 1005 GMT, while U.S. gold futures lost $8.70 to $1,210.30 an ounce.

"Gold bulls' worst nightmares involve a rampant dollar and surging real interest rates, and this macro-trend is currently being fuelled by the expectation that the ECB policy meeting on Thursday, and Friday's U.S. employment data will highlight the gulf in performance between the euro zone and U.S. economies," Macquarie analyst Matthew Turner said....MORE
Here is the last year in silver, monotonic destruction for longs, euphoria inducing for shorts: