RSSCategory: Articles: Gold Silver Prices

Gold price breakout continuing on September 7th 2012

Gold price breakout continuing on September 7th 2012

For three weeks in a row, the gold price has been closing the week with a strong increase. On August 31st, we saw the US Fed coming up with clear hints to more money stimulus to come. In his speech, Mr Bernanke made his case and defended his monetary policy; it became clear that more of the same was coming. On September 6th, Mr Draghi in Europe confirmed earlier rumours that the ECB would buy bonds of several European countries that are in trouble. In fact, what his happening here is that the root cause of the problem (excessive debts by countries) is being cured by creating even more debts (money […]

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Silver Price Forecast: The Great Silver Chart

Silver Price Forecast: The Great Silver Chart

A reader asked me to update a previous long-term silver chart of mine. Below, is the updated long- term chart for silver. Since the last chart, silver has broken out of the pennant formation (on the short-term chart), and is looking really good. On the chart, I have highlighted two fractals (or patterns), marked 1 to 3, which appear similar. What makes these two fractals so special, is the similarity of the circumstances in which they exist.   There was a significant peak in the Dow (1973 and 2007) between point 1 and 2 of both fractals. Also, point 1 on both fractals represents a significant bottom for silver after the peak of […]

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The silver streak has only just begun

| September 10, 2012 | Articles: Gold Silver Prices
The silver streak has only just begun

Following Friday’s dramatic price surge in response to the Bureau of Labor Statistics’ August jobs numbers, precious metals have cooled a little in trading this morning. Wednesday’s German Constitutional Court ruling and Thursday’s FOMC verdict are the big market-moving events to watch out for this week. The European Central Bank’s insistence that its unlimited purchases of sovereign debt from troubled eurozone nations will be “sterilized” offered a sop to the Germans, though some have doubts about this. Robert Wenzel points to a little commented upon ECB press release that announces the suspension of “the application of the minimum credit rating threshold” on collateral used to access short-term loans from the bank. At […]

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Fed Easing Will be Catalyst for Gold Price

Fed Easing Will be Catalyst for Gold Price

The Gold Price drifted lower to $1730 per ounce Monday morning in London, ten Dollars below Friday’s six-month high, while stock markets were broadly flat and US Treasuries fell, amid speculation that the Federal Open Market Committee could announce further stimulus measures later this week. The Silver Price  fell below $33.50 per ounce – around 20 cents below last week’s close – while other commodities were broadly flat, with the exception of copper, which posted gains. Friday’s trading saw the Dollar Gold Price hit its highest level since February, after a disappointing US nonfarm payrolls report led to renewed speculation the Federal Reserve could announce a third round of quantitative easing (QE3) when it makes […]

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Are Commodities coming Back in Vogue?

| September 10, 2012 | Articles: Gold Silver Prices
Are Commodities coming Back in Vogue?

The following chart of the Continuous Commodity Index ( CCI ) shows a sector that apparently is catching the attention of the hedge fund community once again as risk trades come back into favor courtesy of what seems to be another wave of money printing/bond buying about to launch. Notice that the price rally from the late spring low down near 503 first cleared the 25% Fibonacci Retracement level off the drop from the 2011 peak near 692. Instead of falling back through that level and making another fresh leg lower, the market bounced right off that same 25% retracement level and then spiked higher taking out the 38.2% retracement […]

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Bull Pennant forms as the Triangle target gets nailed in Gold

Bull Pennant forms as the Triangle target gets nailed in Gold

Gold finishes the week with a “high and tight” continuation pattern going into next week known as a “Bull Pennant”, see one hour chart left hand side below.  The chart work has been text book in gold for quite some time with the most recent being the breakout to the upside from a multipoint channel on the same one hour chart.  What made the breakout from the channel so significant is that it took place above the prior “Major” trendline resistance of the “Descending Triangle” on the daily chart.  Prior trendline resistance can act as support, see right hand side below. In the big picture, the upside breakout of the descending triangle had a classic “Throwback” and […]

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Investors Preparing For QE3 As Gold and Silver Skyrocket

Investors Preparing For QE3 As Gold and Silver Skyrocket

Silver (SLV) is breaking out past $30 and the trend is moving higher as the Fed signals that they are now ready to pull the trigger and boost the economy possibly as early as the next Open Market Meeting in the middle of September.  Silver is regaining the 200 day moving average on a breathtaking move.  Even though we have the general equity markets at record highs, economic conditions all around the world are not showing evidence of a recovery…yet. The equity markets (SPY) rallying higher during an economic contraction may be forecasting a reflationary turnaround.  Remember a rising equity and bond market historically precedes an inflationary scenario. Silver which […]

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Gold spikes on nonfarm payroll disappointment

| September 7, 2012 | Articles: Gold Silver Prices
Gold spikes on nonfarm payroll disappointment

“Draghi Day” yesterday was something of an anti-climax as far as precious metals were concerned: though the European Central Bank is now prepared to buy unlimited amounts of troubled eurozone governments’ short-term debt, these purchases will be “sterilized”. This is similar to what the Fed has been doing with its “Operation Twist” – offsetting new bond purchases with asset sales. So the total euro money supply is not increased by this scheme. What this does do is prop up troubled periphery governments, and help boost inflation in countries like Spain. At the same time, it is offering savers in countries like Germany bonds and/or savings deposits, which exerts a deflationary […]

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Gold Prices Could Move Above $1700 after ECB Meeting

Gold Prices Could Move Above $1700 after ECB Meeting

Gold Prices dipped briefly below $1690 per ounce during Wednesday morning’s London trading, remaining close to six-month highs, while stocks and commodities were also broadly flat, ahead of tomorrow’s policy announcement from the European Central Bank. Silver Prices dipped below $32 per ounce before recovering, ending the morning over 1% up on the week so far. “The next resistance is at $1700,” says the latest technical analysis from bullion bank Scotia Mocatta. Spot market Gold Prices briefly touched that level on Tuesday, following the release of the latest ISM purchasing managers index data. The ISM data show US manufacturing activity contracted in August for the third month in a row, prompting further speculation about […]

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Gold Hits $ 1700 and Eases off a Bit

Gold Hits $ 1700 and Eases off a Bit

Gold bulls managed to push the yellow metal to the psychologically significant $1700 for the first time in months. As can be expected, it could not hold ABOVE the level as selling from both fresh short sellers and some profit taking from longs, surfaced on the first approach to this round number. Gold has a history of pausing around these even or round numbers, retreating, consolidating a bit, and then pushing through and moving to the next resistance level on the charts. It looks to me like the weakness in the gold mining stocks in today’s session, which are feeling spillover from the generally lower stock market, is enabling the […]

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Upswing Continues for Silver and Gold Bullion, ECB Bond Buying Wouldn’t Be Money Creation

Gold Bullion traded above $1690 per ounce Tuesday morning in London, in line with where it started the week, while stocks and commodities were broadly flat and US Treasuries fell, as markets looked ahead to this week’s European Central Bank policy meeting. Silver Bullion rose as high as $32.33 per ounce – 1.9% up on the week so far, and the highest level since April. “Precious metals are continuing their upswing,” says Tuesday’s commodities note from Commerzbank. “Silver has made even stronger gains than gold…underpinned by speculative financial investors.” On the Shanghai Futures Exchange, the most actively traded silver contract hit a record high of 6932 Yuan per kilogram, newswire Reuters reports. […]

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Consequences of Current Global Monetary Policy will be higher Gold and Silver Prices

Consequences of Current Global Monetary Policy will be higher Gold and Silver Prices

Finally, we have a break to the upside in both gold and silver, something that many precious metals investors have been patiently waiting for, but expected to happen. The price of gold is now a tad away from breaching the $1700 an  ounce level, after smashing through the key resistance levels at $1625 an ounce and $1650 an ounce. AsUS Federal Reserve Chairman, Ben Bernanke, began his eagerly awaited speech at the annual symposium at Jackson Hole, Wyoming, the price of gold dropped sharply. After trading above $1660 an ounce last Friday, the price of spot gold suddenly dropped to an intra-day low of $1644 an ounce. Afterwards, the price […]

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The gold price and the exponential growth of our problems

| September 3, 2012 | Articles: Gold Silver Prices
The gold price and the exponential growth of our problems

Two Bloomberg correspondents reported on August 8 that the US Government’s unfunded liabilities rose by $11 trillion last year, “ten times larger than the official deficit”, and are now at an estimated $222 trillion. The authors base their estimates on figures supplied by the Congressional Budget Office. This makes talk about the “fiscal cliff”, as the Bush tax cuts come to an end, a secondary issue. Meanwhile in Germany the Constitutional Court will be told on 12 September that the bailout costs faced by Germany are €2 trillion with a further €1.7 trillion in the pipeline, compared with only €170 billion a year ago. In contrast with these accelerating deficits, the gold price has […]

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Pressure on Central Banks Good for Gold Prices as ECB Urged to Use Bazooka

Pressure on Central Banks Good for Gold Prices as ECB Urged to Use Bazooka

Gold Prices traded just below $1690 per ounce Monday morning in London, close to five month highs hit after Friday’s speech by US Federal Reserve chairman Ben Bernanke, in which he noted the US economic situation is “far from satisfactory”. “Central banks are still hurtling towards more cash-printing,” one Hong Kong dealer told newswire Reuters Monday. “They are under pressure to be doing something actively, which is good for gold.” “Gold has broken through the topside of a large triangle pattern which had resistance at $1655,” adds the latest technical analysis from bullion bank Scotia Mocatta. “The next resistance is the $1790 high from March.” On the gold futures and options […]

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