Strategist Contact Information Global Research Russell Browne - [email protected] Trading Contacts Gold & Silver Marketwatch Reuters MMCN or (212) 225-6200 Stephen Abbriano - [email protected] Robert Lockwood - [email protected] Daily Update Monday, October 27, 2014 Market Commentary 1-Day Commodity Moves (%) Gold was unchanged overnight as it opened the day at 1230.75/1231.75. It rose marginally to a high of 1231.25/1232.25 before declining to a low of 1227.00/1228.00 as crude oil tumbled close to its 4-year low; and global equities fell after GermanyвЂ™s IFO business climate index dropped to a near 2-year low as gold ended the day at 1229.25/1230.25. Silver was static overnight, opening the session at 17.17/17.22. It climbed to a high of 17.22/17.27 before dipping alongside gold to a low of 17.11/17.16, prior to concluding the session at 17.16/17.21. Gold -0.1 Silver -0.3 Platinum 0.4 Palladium 0.7 Oil WTI fut -0.4 EUR 0.3 S&P 500 -0.3 CRB 0.1 -1 0 1 5-Day Commodity Moves (%) Gold -0.7 Technical Commentary Silver -0.6 Gold closed at 1229.75, softening modestly to complete its fourth consecutive session of decline with an intraday low that appears to be flirting with 1227.80 вЂ“ the 38.2% Fibonacci retracement of the October rally. We focus on 1226 (the 21 day MA) followed by 1220, with near term upside likely limited above the 9 day MA (1238.78). Momentum indicators are neutral, and a declining ADX hints to the absence of a trend. Silver has held flat, closing at 17.19 to end its third consecutive session of consolidation around 17.20. Momentum indicators are modestly bearish, and we expect near term upside to be limited by the 9 day and 21 day MAвЂ™s (17.31 and 17.28, respectively). Recent congestion has been generally bound between the 50% (17.24) and 61.8% (17.11) Fibo retracement levels of the October rally, and a break of these levels will provide clues to the near term direction. Platinum -0.5 The gold-silver ratio has formed its second consecutive doji candle at 71.55 highlighting uncertainty as the ratio remains close to its recent multi-year high. We remain focused on the October 22nd open of 71.30, as a break below this level would threaten the bullish bias. Notable Ranges & Technical Levels Gold 1230.75/1231.75 1231.25/1232.25 1227.00/1228.00 1229.25/1230.25 1,230.50 1,228.75 1,228.75 71.52 Gold OI 410,909 3 410,912 Palladium 4.1 Oil WTI fut -2.4 Copper fut 2.5 EUR -0.7 S&P 500 2.9 CRB -0.3 -3 -2 -1 0 1 2 3 4 5 1 Month Commodity Moves (%) Gold 1.0 Silver -3.1 Platinum -4.8 Palladium -3.7 Oil WTI fut -13.7 Copper fut 1.1 EUR Open High Low Close / Last Mid* London Pricing AM London Pricing PM Handy Harman (Base) Gold / Silver Ratio Open Interest COMEX CBOT Total Copper fut 0.7 0.2 S&P 500 -1.2 CRB -15.0 -3.5 -10.0 -5.0 10/27/14 15:27 (last updated) 0.0 5.0 Source: Bloomberg Technical Levels etc. Technical Levels, Silver 17.17/17.22 17.22/17.27 17.11/17.16 17.16/17.21 17.18 NA 17.180 NA Platinum 1,249.50 1,260.18 1,248.25 1,255.15 1,256.00 1,253.00 1,253.00 NA Silver OI 173,699 7 173,706 Gold Palladium 781.75 788.40 778.10 785.70 781.00 788.00 788.00 NA Pivot Primary Support (Buy) Primary Resistance (Sell) HBOP LBOP Bollinger Band Upper Bollinger Band Mid Bollinger Band Lower Relative Strength 9 Day Relative Strength 14 Day 1,230.39 1,226.29 1,233.28 1,240.27 1,219.30 1,255.78 1,225.72 1,195.65 46 47 Silver 17.221 17.071 17.309 17.546 16.834 17.642 17.288 16.933 39 38 Platinum Palladium 1,255 1,248 1,262 1,277 1,233 1,302 1,266 1,231 41 38 784.57 779.53 791.03 802.53 768.03 805.69 776.08 746.47 54 49 Close/last mid refers to the spot closing floor price in gold and silver, and spotвЂ™s last mid price as provided by Bloomberg in platinum & palladium spot. All other data provided by Bloomberg. Actual market levels may differ. 1 Gold and Silver Market Watch Monday, October 27, 2014 Gold: 2-Year Close with Moving Averages ($/oz) Gold: 2-Month Candlesticks ($/oz) 1775 1300 1675 1275 1575 1250 1475 1225 1375 1200 1275 1175 Nov-12 Mar-13 Jul-13 Spot Nov-13 100-Day Mar-14 200-Day 1175 4-Sep Jul-14 14-Sep 24-Sep 4-Oct 14-Oct 24-Oct 4-Oct 14-Oct 24-Oct 400-Day Silver: 2-Year Close with Moving Averages ($/oz) Silver: 2-Month Candlesticks ($/oz) 34.5 20.0 32.5 19.5 30.5 19.0 28.5 18.5 26.5 24.5 18.0 22.5 17.5 20.5 17.0 18.5 16.5 Nov-12 Mar-13 Spot Jul-13 Nov-13 100-Day Mar-14 200-Day 16.5 4-Sep Jul-14 14-Sep 24-Sep 400-Day Source: Bloomberg (may differ from market spot prices) Moving Averages 5 Day MA 10 Day MA 20 Day MA 30 Day MA 60 Day MA 100 Day MA 200 Day MA 400 Day MA Markets FX Majors Gold 1,236.36 1,238.08 1,226.47 1,224.69 1,253.10 1,273.81 1,285.77 1,303.25 Silver 17.247 17.319 17.273 17.500 18.460 19.338 19.677 20.546 Platinum 1,261 1,261 1,264 1,286 1,356 1,405 1,421 - Palladium 778.44 771.32 775.57 787.77 831.33 841.30 810.13 - CAD EUR GBP CHF AUD ZAR JPY as of: 1.1238 1.2708 1.6127 0.9487 0.8803 10.9402 107.7100 10/27/2014 15:27 CRB DJAIG Crude (fut) S&P 500 US 10 Yr US 30 Yr CDN 10 Yr as of: 270.41 116.83 80.71 1959.25 2.26 3.04 2.01 10/27/2014 15:27 This report has been prepared on behalf of Scotiabank and is not for the use of private individuals. 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