Metals: Washout Complete?

Ira Epstein

Ira Epstein reviews the recent fluctuations in the metal markets, highlighting a significant bounce from the lows in gold prices following a volatile week. Gold's role as a traditional safe-haven asset means that episodes of sharp selling followed by rebounds often draw close attention from traders watching whether the lows hold; Epstein frames the question of whether the washout is complete as the key issue heading into the coming sessions. He also examines high energy prices, particularly oil, and the geopolitical tensions involving Iran that are contributing to instability across the markets. Elevated energy costs matter for metals in part because energy is a significant input in mining and smelting, and sustained tension in the Middle East has historically been a source of volatility across commodity markets.

Epstein further addresses the challenges facing the U.S. economy, including rising debt and Social Security issues — long-standing fiscal concerns that periodically re-enter market discussion as drivers of longer-term sentiment — while noting the relative stability of currency markets as European vacations come to an end and market activity picks up again. The return of full participation after the late-summer holiday period in Europe typically coincides with renewed trading volume, which is the backdrop against which he is assessing these moves.

Looking ahead, he previews upcoming economic data releases — such as corporate layoffs, nonfarm productivity, trade balances, and service sector PMIs — and points to their potential impact on the markets. These reports, particularly labor and services-sector data, are regularly watched by traders for signals about the trajectory of the U.S. economy, which in turn influences metals and energy positioning.

About the Author

Ira Epstein

IraEpstein.com

LINN & Associates

Over the past 35 years, Ira Epstein has built a reputation for providing clients with easy-to-use technology and teaching old-fashioned trading know-how. A number of the firm's brokers have more than 30 years of trading experience. No matter how technology changes the methods of entering orders, there is no substitute for having "been there and done that before." It is this blend of services — education, market information, and trading platforms — that brings everything together.

Ira 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 decided to shift 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. Along the way, driven by increased small-lot trade volume, Ira became a leader in trading technology out of necessity. He was among the first to embrace the Internet, which dramatically changed both how information is delivered and how trading takes place today.

One of the ways Ira and his brokers showcase their expertise is through e-mails of market information and Ira's "Futures Videos," which can be viewed on the firm's website, through Market Center, Linn-IraChart Software, and on YouTube.

IraEpstein.com