Veteran futures analyst Ira Epstein of IraEpstein.com and LINN & Associates takes stock of the metals markets, with attention centered on the recent performance of gold and silver as traders position themselves ahead of a closely watched speech by Fed Chair Walsh.

Economic Calendar in Focus

Epstein highlights the upcoming economic events that could move the markets, including the Chicago PMI and the University of Michigan's consumer sentiment index. He notes that these releases have the potential to influence trading across asset classes. Both indicators are widely tracked gauges of business activity and consumer confidence, and shifts in either can feed into expectations about the broader economic outlook.

A central event on the calendar is the anticipated speech by Fed Chair Walsh. Epstein emphasizes the implications the address could carry for interest rates and the likely reactions it may prompt in the markets. Fed chair speeches are closely watched because markets parse them for signals about the direction of monetary policy, and precious metals are among the asset classes most sensitive to changes in rate expectations, since interest rates affect the opportunity cost of holding non-yielding assets like gold.

Gold and Silver Outlook

Turning to the metals themselves, Epstein points to bullish trends in gold, noting its movement above key averages as a technical feature of the current market. Trading above widely watched moving averages is often read by technical analysts as a sign of underlying momentum. In silver, he advises caution despite the metal's recent strength. Silver tends to trade with higher volatility than gold, a dynamic that has historically led analysts to flag added risk when positioning in the metal.

Energy and Grains

Beyond the metals, Epstein touches on the stability of energy prices and the fluctuations seen in grain markets, which he attributes to the ongoing crop season. Grain prices are customarily sensitive to seasonal factors tied to planting, growing, and harvest cycles, which can drive heightened price swings during key periods of the crop year.

About the Author

Ira Epstein is affiliated with IraEpstein.com and LINN & Associates. Over the past 35 years, he has developed a reputation for providing clients with easy-to-use technology and teaching what he describes as "good old fashioned trading know-how." A number of the firm's brokers have more than 30 years of trading experience. Epstein's view is that no matter how technology changes the methods of entering orders, there is no replacement for having "been there and done that before." The firm's blend of services spans education, market information, and trading platforms.

Epstein began in the futures markets in 1969, working his way up from the ground as a "floor runner" and eventually becoming a Floor Trader. In the mid-1970s he shifted his career within the industry toward developing both retail and commercial clientele. His customer base grew to the point that in 1984 he founded "Ira Epstein & Company," a trading firm specializing in retail, commercial, and self-directed discount futures trading.

Driven by increased small-lot trade volume, Epstein became a leader in trading technology out of necessity and was among the first to embrace the Internet, which dramatically changed how information is delivered and how trading takes place today. He and his brokers showcase their expertise through e-mails of market information and Epstein's "Futures Videos," which can be viewed on the firm's website, through Market Center, Linn-IraChart Software, and on YouTube.

Source: GoldSeek