This means that it may be time for investors to reverse course in the currency, US exporters and precious metals trade taking profits in GLD and SLV.
From the metals trade which is my daily bread I can tell you that no one is ever going to build another copper smelter in the US ever again.
This means that it may be time for investors to reverse course in the currency, US exporters and precious metals trade, going short rather than long on these two trades.
Typically, over the years, the two precious metals tend to trade together.
Also in December, the U.S. Senate passed expanded sanctions on trade with Iran which included restricting trade in precious metals.
However, the metals prices quickly rebounded to trade near the middle of their daily trading ranges for the remainder of the session.
That would take a lot of trade volume away from metals markets in London.
December trade data for precious metals showed a continuation of recent trends.
In return, the U.S. and its diplomatic partners will offer to reduce some of the economic sanctions imposed on Tehran in recent years, including a ban on its trade of gold and precious metals, said officials involved in the diplomacy.
George Gero, vice president with RBC Capital Markets Global Futures, vice president-precious metals strategist, said he expected gold to trade steady to higher next week as gold.
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The precious metals tumbled as soon as U.S. trade deficit numbers came out at 8:30 a.m.
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The US Treasury market continues to trade near record low yields, while precious metals ETFs like SPDR Gold Shares ( GLD), and iSilver Trust ( SLV) have been holding steady after their recent correction, not too far from their all time highs.
But it is incredibly hard to value raw metals, Mr Goodhart argued, so the cost of using them in trade is high.
Gold (NYSE:GLD) dipped below its 8-day moving average for a day last week but quickly climbed back above it, and Silver (NYSE:SLV) also remains above its 8-day MA. The precious metals are in a tight upper level consolidation and will likely yield a trade if they break above or below key resistance or support.
As with metals, purchasers can opt to receive the goods from the warehouse rather than trade the contract on.
Outside of the precious metals, high-yield corporate and local currency emerging market debt are another trade favorite that has legs even if the equity markets turn positive.
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If the U.S. dollar index continues to trade sideways to higher, that would be a bearish underlying factor for the precious metals markets.
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Every Christmas the three men gather in Courchevel to trade barbs, ski and, most importantly, tend to a Swiss-incorporated metals and mining conglomerate, Eurasian Natural Resources Corp.
It has built one of the world's fastest-growing economies, thanks mainly to the large-scale export of oil, metals and grains, which helps to ensure that it doesn't rely too heavily for trade on Russia, its former Soviet neighbor, or on China.
If that were to happen, demand for dollars would sink, and because there is no other currency to take its place in terms of trade, global inflation would rise as important commodities like agricultural goods, oil and precious metals metals would rise substantially to compensate.
ETFs trade like a stock but track the price of the commodity, with prospectuses of the major metals ETFs saying that gold is put into storage to back the shares.
FORBES: FOCUS: Gold Sideways; ETF Outflows, Stocks Hurt; Physical Demand, Accommodation Help
Bob Haberkorn, senior market strategist at MFGlobal, said although gold prices slid in the late U.S. afternoon trade, ultimately it will be bullish for gold and silver as investors will continue to seek those metals as safe havens.
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