Palladium Broke Out Overnight

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August 10, 2016 -- Tuesday was a quiet, though positive, day for the precious metals. But then things really heated up overnight in Asia. Gold was trading in a very narrow $12 range on Monday and Tuesday, but shot up $15 overnight. The most substantial gains are coming in Palladium, which has traded near $740 per ounce -- up about 6% in overnight trading.

Meanwhile, physical coin and bar demand remains sluggish here in North America. After selling an average of 4.4 million American Silver Eagle coins per month through June, July sales of Eagles reported by the U.S. Mint dipped to less than 1.4 million. And sales so far in August, retail precious metals sales look even weaker.

The lackluster action in the gold and silver markets during these summer months isn't all that surprising though. This time of year is usually the slowest and the weakest for the precious metals, generally speaking. However, both gold and silver continue to show amazing resiliency -- and neither one appears as though it wants to break down to lower prices. Consolidation periods like this, especially when they come after a period of such amazing strength, are often viewed as constructive and positive.

Live prices at MoneyMetals.com show gold currently trading at $1,357.30 per ounce on the global market, and silver is coming in at $20.48.

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