RSSCategory: Articles: Gold Silver Prices

Cycle Counts – Gold

Cycle Counts – Gold

Now you know why I was “50-50” as per last weekend’s report; I was just never comfortable with that (Oct 24th – $1,698) Low holding up as an Investor Cycle Low.  There was just a lot of evidence out of my Cycle Analyzer that was telling me to be very cautious, that the retracement to date was just not deep enough.  So in reality what we have playing out here is essentially what I have been calling for since mid-October.  Some 5 weeks ago when the decline began, I pointed out that a move back below $1,680 would be a normal retracement and what to expect. We witnessed a trend-line break […]

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Gold & Silver Rise as China’s Long-Term Demand Forecast to Keep Growing

Wholesale prices to buy gold rose to 7-session highs in London on Thursday morning, touching $1726 per ounce even as new data showed US employment rising at its fastest pace since February. The private-sector ADP payrolls report said the US added 158,000 jobs in October. Earlier data from the manufacturing sector in China, the world’s #2 gold consumer, showed its slowdown to be easing. However, “Over 17% of survey respondents reported a fall in the volume of new export orders,” said the new Purchasing Managing Index report from HSBC/Markit Economics, “and just under 10% noted an increase.” Two-thirds of Chinese businesses reporting quarterly results to the stock market have seen a […]

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Silver Price Update – October 2012

Silver Price Update – October 2012

The silver price has been holding strong above $ 32 per ounce over the past  couple of weeks. The metal closed the month of October at the London Fix at $ 32.28, € 20.03, £ 24.28.  Where does the price of silver stand currently? The charts show a couple of interesting things. First, on the weekly chart we see the 50 day moving average about to cross the 200 day moving average. In technical terms it’s an important bullish event, called a golden cross over. Moreover, since the big smash of May 2nd 2011, the silver price has been standing very strong the past couple of weeks  compared to the previous […]

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Big Jump in London Gold Trading

Big Jump in London Gold Trading

Gold trading in London – heart of the world’s wholesale bullion market – leapt in September. How come? “The continued economic uncertainty in the Eurozone and US, the end of the holiday period and the start of the Indian festival season boosted clearing turnover,” says trade body the London Bullion Market Association, releasing the new data to members on Thursday. But matched by a sharp rise in the size of gold-backed trust funds traded on the stock market (ETFs), these latest figures really suggest strong interest from hedge funds, investment banks and other institutions around the US Federal Reserve’s announcement of QE3, we believe. Why QE3 as the catalyst? Because […]

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Could The Ongoing Financial Crime Affect The Gold Price?

Hera Research released an extremely interesting paper. The research company focuses on relationships between macroeconomics, government, banking, and financial markets in order to identify and analyze investment opportunities with extraordinary upside potential. In their paper, Hera analyzes the potential triggers of a collapse in the US dollar, which in turn would trigger a hyperinflation. The research company clearly expects we are approaching such an epic event, quoting Austrian economist Ludwig von Mises: “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later […]

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Gold Prices Rally After US GDP, But Still Record Third Straight Weekly Loss

Gold Prices hovered above $1700 per ounce throughout Friday morning in London, after yesterday’s rally reversed overnight, while European stock markets traded lower this morning following losses in Asia, ahead of the release of US GDP data later today. “The trend remains bearish so long as gold trades below $1723,” says the latest note from Scotiabank technical analyst Russell Browne. “People are still looking a bit at the downside rather than the upside for the time being, waiting for it to break $1700,” adds Ronald Leung, director at Lee Cheong Gold Dealers in Hong Kong. Silver Prices traded just above $31.70 per ounce for most of the morning, 1.2% down […]

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Dow Jones / UBS Commodities Index Change to Benefit the Precious Metals

Every year, the various commodity indices, that are used by hedge funds and index funds to benchmark against, have a reweighting of the various commodity inputs that are used to comprise each particular index. During this reweighting process, the percentage of some commodities are increased while the percentage of others are decreased. As a result, those funds benchmarking against the index, are forced to recalibrate their particular portfolios, selling some commodity positions while buying some new commodity positions in order to come into alignment with the new weightings. Dow Jones/UBS recently announced that the precious metal component of their index will be increased by 2% from this year’s levels for […]

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Technical Charts For Gold, HUI Index And The US Dollar

Technical Charts For Gold, HUI Index And The US Dollar

Looking at the gold chart below, we can see that gold has been correcting over the last two weeks. When applying some technical analysis to the gold chart, we can clearly see that there would have been overhead resistance at $1800 since most of the year gold has traded between $1550 and $1800. A few weeks ago, we also noticed a big build in the short position on the Comex’s Commitment of Traders report COT by the commercial and bullion banks. The effort to stop gold’s advance at a key resistance level was successful in part because of the huge increase in the short position at that level, which is […]

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Silver Price Volatility – 24 October 2012

Silver Price Volatility – 24 October 2012

Every picture tells a story and this picture depicts the volatility inherent in the silver market. With options expiry coming to fruition this week this sudden spike must have scared the whatsit out of the shorters. We sincerely hope that they managed to get back off the window ledge in time to see the price of silver come back to a level acceptable to them. As this tiny market sector unfolds we must brace ourselves for violent oscillations in both directions. The paper players cannot afford to have prices move uncontrollably to levels that could actually destroy their positions. Options expiry is a treacherous time for all us and we […]

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Gold Price During Stage Three – Up Down Up Down Up

Gold Price During Stage Three – Up Down Up Down Up

STAGE 3: The price of gold is subject to increasing highs and lows and large investment funds move in and out of gold as global uncertainties wax and wane, a sign that gold is increasingly a haven in uncertain times. pp. 151-152, Time of the Vulture: How to Survive the Crisis and Prosper in the Process, DRS, 3rd ed., 2012 In How to Survive the Crisis and Prosper in the Process (3rd ed., 2012) I describe the five stages of gold. When I began writing the book in 2006, gold was in Stage 2. In 2007, gold entered Stage 3 where speculators and investment funds become a factor the increasingly […]

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Monetary Policy Pause sees Gold Fall through $1710

Monetary Policy Pause sees Gold Fall through $1710

Gold Bullion fell below $1710 per ounce ahead of Tuesday’s US session, its lowest level in over six weeks, as stocks and commodities also fell and the Dollar rallied, with two weeks to go until the US presidential election. Silver Bullion fell through $32 an ounce to hits its lowest level since the first week of September. “You’ve had QE priced in and what we’re seeing now is a bit of a retracement following that,” says Daniel Brebner, analyst at Deutsche Bank, referring to last month’s Federal Reserve announcement of open-ended quantitative easing. “We have a pause in monetary policy action – it’s very unlikely we’re going to see anything in the […]

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Platinum Price May Outperform Gold and Silver As Strike In South Africa Intensifies

Platinum Price May Outperform Gold and Silver As Strike In South Africa Intensifies

We are seeing some healthy profit taking in precious metals after making an explosive breakout over the summer.  Investment demand after QE3 is increasing as investors seek alternatives to fiat currencies which are being devalued by Central Banks all over the world. We may see consolidation and volatility in the markets until after the U.S. Presidential Election, when most investors realize that not much will change.  All over the world governments are looking to boost unhealthy economies and this will continue regardless of who is in office. Major infrastructure projects will probably be announced after the election both in the U.S. and China to boost employment. Additional means to boost […]

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Gold gets rejected at resistance

Gold gets rejected at resistance

Since gold flushed out some traders on the previous bearish “Head and Shoulders” pattern that was pointed out on the blog last week, gold made a rally to the prior support of the “Balance Area” around $1,755 an ounce and this acted as strong resistance. I would have never guessed that over the past six weeks I would not have had a single entry for a swing/position trade in gold to the long side in the model swing/position trade portfolio, but there has not been a single order executed with my methodology.  There is nothing wrong with preserving capital for future opportunities. The last COT report in gold this past Friday showed the longs […]

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Investors seeking allocated gold

Another weak day for gold and silver yesterday has continued during Asian and European trading today, with gold falling below $1,750 and silver once again trading under $32.50. Yesterday brought mixed economic news: one the hand, claims for unemployment benefits in America shot higher while corporate earnings from giants such as Google disappointed; but strength in the Philadelphia Fed’s manufacturing survey gave the bulls something to cheer about. The Dollar Index gained 0.40%, with the greenback also strengthening against a broad basket of emerging-market currencies, as that familiar “risk off” trading returned. Action in gold at the moment may be disappointing for some, who may have been expecting an endless […]

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