RSSCategory: Articles: Gold Silver Prices

Conditions Still Favorable for Gold, But Dollar Strength Has Stalled Gold’s Move

Wholesale prices for Buying Gold eased to just above $1770 per ounce Tuesday morning in London, around ten Dollars below where they started the week, while stocks and commodities were broadly flat despite major economies seeing their growth forecasts downgraded by the International Monetary Fund. Prices to Buy Silver dropped below $34 an ounce – down more than 2% on the week so far. US Treasury bond prices gained this morning, in contrast with those for UK and German government debt, which fell along with the Euro. A day earlier, the volume of gold held to back SPDR Gold Shares (GLD), the world’s biggest Gold ETF, hit a new all-time high at 1340.5 tonnes. “Though […]

Continue Reading

The USD October Mystery and Its Influence on Precious Metals

The USD October Mystery and Its Influence on Precious Metals

Right now all currencies on the planet are backed by debt. If you need a refresher course in why fiat money can become toast, here are some words published this week on the website of Texas Congressman Ron Paul about fiat money and gold standard : Fiat money is not good money because it can be issued without limit and therefore cannot act as a stable store of value. A fiat monetary system gives complete discretion to those who run the printing press, allowing governments to spend money without having to suffer the political consequences of raising taxes. Fiat money benefitsthose who create it and receive it first, enriching government and its cronies. And […]

Continue Reading

Traders Advised to Buy Gold on Pullback as China Slowdown Plays Bogeyman

Prices to Buy Gold slipped 0.6% to $1768 per ounce in Asian and London trade Monday, holding almost $30 below Friday’s new 11-month high as world stock markets also fell together with commodity prices. Chinese traders wanting to Buy Gold saw the price fall sharply as the Shanghai futures market re-opened after the long Golden Week holidays. Silver Prices fell nearly 5% from last week’s new 7-month high against the US Dollar, hitting the lowest level in nearly two weeks. The US Dollar rose against all other major currencies, knocking the Euro back beneath $1.30. “We are somewhat cautious on gold here,” says a note from commodity brokerage Intl FC Stone.  “It has had a […]

Continue Reading

More Bullish Signals For Gold

More Bullish Signals For Gold

It’s amusing to see how much people still don’t understand the dynamics behind Gold. You can find in this short article a couple of examples. This video goes back to the days after QE3 was announced (also known as QE to Infinity). The CNBC commentator cannot believe that gold could go to $5,000 and laughs Peter Schiff away. Well, if $5,000 is high, what to think about $10,000 gold that some respected people are expecting? The historic evidence is there. If there is one chart that everyone knows, at least everyone who read at least one article about Gold, it’s the historic Dow/Gold ratio.The trend is clearly there, all circumstances […]

Continue Reading

Silver Price Attack Of Friday October 5th

Silver Price Attack Of Friday October 5th

We witnessed an extremely dubious event in the silver market on Friday October 5th. In fact, we were not in front of the computer screen at that very moment, but SilverDoctors brought it to the world’s attention. The silver price was hit very hard and lost more than 3% in a matter of 5 minutes, on very high volume (not visible in below chart but you can see it on the SilverDoctors website). It appears that the selling volume equaled 1.5 times the annual US silver production. What’s more, on the silver spot price chart on Kitco’s website, the “flash crash” was initially visible on the chart but then “magically” […]

Continue Reading

The opposing forces behind gold’s bull market

The opposing forces behind gold’s bull market

What accounts for gold’s strong performance since the initial rebound in July? That’s the question that many analysts are (belatedly) trying to answer. The first and most obvious answer is stimulus; specifically the stimulus provided by the world’s leading central bank in the U.S. The Federal Reserve’s latest bond-buying scheme known as QE3 is to date the biggest stimulus aid that has had an impact in boosting the gold price. As we all know, gold loves inflation and any increase in monetary liquidity in the global financial system will be reflected in an increasing gold price sooner or later. Analysts have noted that the gold price has recently increased in, […]

Continue Reading

Prices to Buy Gold Hit New 2012 High

Wholesale prices to Buy Gold rose to $1794 per ounce ahead of Thursday’s US session, above the previous 2012 high hit earlier this week, while stock markets were broadly flat and US Treasury bonds fell ahead of the publication of minutes from the latest Federal Reserve policy meeting. “We are watching for a break to the upside through $1790 resistance, which will then target the all-time nominal high [at around $1920 per ounce],” say technical analysts at Scotiabank. “A break through support at $1750 will lead to a deeper correction.” Prices to Buy Gold in Sterling meantime rose to their highest level since the end of February at £1113 per ounce. Prices to Buy Silver touched […]

Continue Reading

Same Play – Different Act

Nothing much has changed since my last post which is why I have refrained from posting any recent comments since this past weekend. Gold is stuck below $1785 – $1800 and Silver is stuck below $35. Until these respective resistance levels are convincingly cleared, the market is going to sit here with the risk of the shorter-term oriented speculative longs getting impatient and bailing out. Thus far bears cannot break down either market but neither can the bulls blow past the obvious overhead capping action. This week’s COT report will be informative in allowing us to see what kind of , if any, spec liquidation has been occuring. Some sort […]

Continue Reading

All-time Highs For Gold Price In Euros But More To Come

The past couple of weeks have been exciting in the Gold and Silver markets. On several occasions, we updated our readers about the gold price breakout, about the certainty of higher gold prices because of the globally coordinated money printing and potentially a silver price explosion that’s in the cards. Now in terms of gold price outlook, the list with analysts and entrepreneurs who expect sky high gold prices of $5,000 or more is growing; we have exceeded 50 public analysts worldwide who expect a gold price higher than $5,000 in the meanwhile. Apart from discussion about a gold and silver mania, Chris Vermeulen is focusing in his latest market commentary on the […]

Continue Reading

Gold COT: on the cusp of a short-covering extraveganza?

Gold COT: on the cusp of a short-covering extraveganza?

With QE to infinity everywhere, it is not surprising that gold and silver prices have been performing strongly recently. Buyers from hedge funds to central banks to ultra-high net worth individuals abound. In the past the limitation has always been the ability of those categorised as Commercials at the Comex to put a lid on things. So the big question has to be, can they do it again this time? The chart below gives us some context. It shows all categories of Comex traders, plus open interest, in 100-ounce gold contracts.  Note the sharp rise in open interest (black line) from historically low levels. Note also the principal driver, Money managers (blue […]

Continue Reading

Gold Prices Steady Near Highs, Investors Should Allocate to Gold says Pimco

Gold Prices traded in a tight range just below $1780 per ounce for most of Tuesday morning’s London session, just below a new 2012 spot market high touched yesterday following comments from US Federal Reserve policymakers. Silver Prices hovered just below $35 per ounce, close to seven-month highs, while stocks and the Euro ticked higher despite warnings that Spain is underestimating the amount of recapitalization its banks need. Commodities were broadly flat, with copper showing some strength, while major government bond prices fell. A day earlier, Dollar Gold Prices touched a new 2012 high at $17971 per ounce during Monday’s US session, while the Gold Price in Euros set a fresh all-time record at €44,583 per […]

Continue Reading

Third-time lucky for gold at $1,800?

Third-time lucky for gold at $1,800?

Another Monday, and the start of another quarter. We are also heading into the Indian festival season, which is often a period of strength for precious metals prices. Over the last decade, the gold price has on average performed best during Q4. Right now though, the metal is struggling to clear resistance at $1,780. Though some of the selling pressure last week was a result of hedge funds taking profits/squaring books at the end of the quarter, look at a gold price chart for the last year plus and it’s pretty clear that the $1,780-1,800 zone is an important resistance level for gold. Dan Norcini highlights gold’s year-long trading range at his site – […]

Continue Reading

Gold Bullion Has Base for Assault on $1800

Gold Bullion dipped below $1770 per ounce Monday morning in London, though it remained in line with the last fortnight’s trading, while European stock markets rallied along with the Euro following news late last week that the capital needs of Spain’s banks are within existing provisions. “On the monthly chart, the bull trend remains intact, with uptrend support at $1594 and resistance at $1790, the previous high,” says technical analyst Russell Browne at Scotia Mocatta. “[Gold seems] to have established a base now down at $1740,” adds Dave Govett, head of precious metals at brokerage Marex-Spectron. “But we also seem to have a ceiling in place between $1785 and $1790…I think […]

Continue Reading

The current phase of development in Gold

The current phase of development in Gold

The daily timeframe is a picture of “Horizontal Development” in the Gold futures (see right hand side chart below zoomed in for six months).  The highlighted blue “Rectangle” is a Mature Balance Area in Auction Market Theory.  The balance area is a range of current value with the upper extreme being an “unfair high” and the lower extreme being an “unfair low” among market participants in a given timeframe.  “Responsive” type traders fade this range.  “Initiative” type traders are looking for the breakout into trend.  The higher probability trade for either trade plan would be with the prior trend. Is there a specific level that I would buy gold?   My answer is to never commit to […]

Continue Reading