RSSCategory: Articles: Gold Silver Prices

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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Silver Fails at 32.50 Support, Attempting to Hold at $32

Silver Fails at 32.50 Support, Attempting to Hold at $32

You can see on the weekly chart that silver failed (once again) to extend through stubbornly strong overhead resistance near $35. Having done so, it is now setting back as speculative longs are getting flushed out. Additionally, fresh shorting is occurring. The metal looks like it wants to drift lower yet unless it can pop back over $32.50 before the weekly trading ends. If it does not, odds favor a move down towards the 50 week moving average near the $31 level. That would put it back near the middle of the very broad trading range that it has been stuck in for more than  year now and effectively leave it […]

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Gold Is Not Back In Favor Yet …

Gold Is Not Back In Favor Yet …

Despite the decline this past week, gold seems to be regaining favor with global investors, as just a week earlier it had been flirting with the $1,800 an ounce mark. Quite a change from the sentiment in early summer when some investors were questioning whether the yellow metal’s decade-long bull run was coming to a close. The rebound in investor sentiment toward gold, of course, coincided with the launching of open-ended QE3 (or QE infinity) by the Federal Reserve. Since then gold has “barely paused for breath. It has, as discussed previously, touched all-time highs in terms of euros or Swiss francs. QE3 certainly seemed to worry some investors. These […]

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Gold Holding near Secondary Support Level, but is struggling

Gold Holding near Secondary Support Level, but is struggling

As you can see on this shorter term chart, gold has broken the nice STAIR-STEPPING PATTERN that had been in plce since the middle of August. The overhead resistance at $1,800 has proven to be too formidable for the bulls to overcome and thus the market has set back due to a combination of both stale long liquidation and fresh shorting against this resistance line. The market is probing lower looking to see at what price level more demand, especially on the physical market, can be generated. It is important that the line marked, “SECONDARY SUPPORT” does not give way. If it does, gold will drop to $1700 – $1690 […]

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China’s Demand to Buy Gold in Spotlight, Dollar-Gold Recovers and Euro-Gold Hits 6-Week Low

Prices to Buy Gold recovered an early dip in London on Wednesday morning, rising back to $1750 per ounce as European stock markets also rose and the single currency hit its best level in more than a month. Commodities were broadly flat but so-called “safe haven” government bond prices ticked lower as Spanish debt rose on expectations of a formal bail-out request. The Moodys rating agency last night confirmed Spain’s ranking above “junk” status. Madrid’s 10-year bond yields today eased to their lowest spread above comparable German debt in 6 months. “Gold and the precious complex have been held afloat overnight and this morning by a stronger Euro,” says UBS strategist Edel Tully in […]

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When the Price of Gold is Sold-Off on Comex, use these Dips to Buy More Physical

When the Price of Gold is Sold-Off on Comex, use these Dips to Buy More Physical

After failing to break above the $1800 an ounce level, gold prices came under some selling-pressure last week to trade lower and off its recent highs. The price of the yellow metal closed out the week at $1754.30 an ounce down 2% from last weeks’ high as the US dollar gained against a basket of other major currencies. On Monday, the price of gold fell by another 1% to $1,727.50 an ounce, the lowest level since September 13. The price of spot came under some selling pressure almost as soon as the US session on Comex began. Prices fell by around $20 an ounce in the first two hours of […]

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What Will the Price of Gold Be in January 2014?

What Will the Price of Gold Be in January 2014?

Jeff Clark from Casey Research has written great articles and here is another one. The charts which show the exploding monetary base are well known in the meanwhile, but Jeff Clark presents  a particular one that shows the correlation between the gold price and the monetary  base. Is there anything more clear than this trendline? Now over the time period that is used in the chart, monetary policies were controlled to such a degree that money markets are leading an artificial life. Obviously that can last for a limited period of time. It’s impossible to continue several years with zero interest rates (negative real rates), exponential money growth in an environment with high real unemployment […]

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Gold is at a cross road: What to look for

Gold is at a cross road: What to look for

I have been looking to put on a swing or position trade to the long side in Gold for the past five weeks but have been unable to do so. There hasn’t been a pattern that I felt offered me a favorable trade location in regards to risk and reward in order to justify that entry. The bottom line is preservation of capital in speculating. There are two conflicting patterns in gold right now: The 30 minute chart has a Bearish “Head and Shoulders” pattern that developed over the past ten days and can be seen on the left hand side chart below. A failed pattern is a very strong […]

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Chart of the intra day – Gold

Chart of the intra day – Gold

I have not put on a “swing/position” trade yet in Gold since starting the subscription based service on September 9th, 2012.  I am biased to the long side, but a favorable trade location for a swing trade hasn’t presented itself in regards to probabilities, reward and risk with my methodology.  It has been wise over the past three weeks to stay on the sidelines in that respect. As far as patterns go, today there was a textbook bearish “Head and Shoulders” pattern on the 5 minute chart below with the “measured rule” target getting nailed quickly. I would prefer to see the 1,755 area of previous support in the daily timeframe get tested, and a […]

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