RSSCategory: Articles: Gold Silver Prices

Japan Follows Global Easing Trend, Gold Price Should Decisively Breach $1800 in Q4

The Dollar Gold Price fell to $1772 per ounce Wednesday morning in London, a few hours after hitting its highest level for nearly seven months after the Bank of Japan became the latest central bank to announce further quantitative easing measures. “It seems that the stars are now aligned for gold to move higher,” says Anne-Laure Tremblay, analyst at BNP Paribas. “The next hurdle to overcome will be the $1800 an ounce level, which we expect to be breached decisively in the fourth quarter.” The Silver Price fell to around $34.60 an ounce – having hit $35 a day earlier for the first time since March. Stocks and commodities were little changed on the […]

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Profit Taking Sees Gold Bullion Fall Back from Highs, but Support and Bullish Momentum Seen

Gold Bullion prices hovered just below $1760 per ounce during Tuesday morning’s London trading, 1% off the high hit last week after the US Federal Reserve announced its new open-ended asset purchase program. “Immediate bullish upside momentum will be maintained while the Gold Price trades above Thursday’s low at $1723.69,” reckons Axel Rudolph, senior technical analyst at Commerzbank. “Support above this level can be seen…at $1749.51 and below it at the psychological $1700 level.” Silver Bullion traded in a tight range below $34.20 an ounce this morning – 2.1% off Friday’s six-month high. Stock markets meantime edged lower, while US Treasury bonds gained. Industrial commodities were little changed, following Monday’s sudden drop in oil […]

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As Currencies Devalue due to Monetary Expansion, Gold Prices are Headed Higher

As Currencies Devalue due to Monetary Expansion, Gold Prices are Headed Higher

Last week the gold sector was filled with action as gold prices got yet another major boost on Thursday when Ben Bernanke, chairman of the U.S. Federal Reserve announced another round of quantitative easing. After, an initial sell-off on the opening of the US session on Comex, which has become practically a customary trade of the bullion banks prior to any major monetary policy statement, the price of gold exploded moving sharply upwards from an intra-day low of $1717 an ounce to $1779 an ounce in less than two hours. The Fed said that it will begin buying $40-billion in agency mortgage-backed securities every month starting Friday. It also extended […]

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Gold & Silver Price Today – September 17th 2012

Gold & Silver Price Today – September 17th 2012

It was rather a calm day today as far as the gold and silver prices are concerned. The metals need a short break here, after 4 consecutive weeks of strong gains. The impressive gains of the end of past week, after “QE to infinity” was announced, need to be digested. A month ago, on the 17th of August, the gold price in US dollars dipped below 1,600. The gold price today closed at 1,764.70 on average volume.  As Reuters reports today, the precious metals held more firm than the other commodities, which is a sign of strength and believe in the safe haven character of gold & silver. Silver had a similar price […]

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Silver Price Forecast: Is Silver Fast On Its Way To $50?

Silver Price Forecast: Is Silver Fast On Its Way To $50?

There is not just a similarity in how gold and silver trade at the same time period, but also how they trade at similar milestones, despite the fact that those milestones are sometimes reached at different times. This can cause silver or gold to be the leading indicator, depending on the particular milestone. The 1980 peak for both gold and silver is definitely an important milestone. For this 1980 milestone, gold is undoubtedly the leading indicator (since gold has already passed its 1980 high), so it could help us to project what silver might do around this milestone. Market conditions often cause silver to fall behind gold, for quite some […]

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Euro gold price taking off

| September 17, 2012 | Articles: Gold Silver Prices
Euro gold price taking off

After reaching a new all-time high of €1,365 per troy ounce last week, the price of gold looks ready to celebrate the new “unlimited” fashion at the ECB with some healthy action of its own, expect the following months to be very exciting. The temptation to print is just too strong, the old school bundesbankers stepped out and those left behind are more than happy to sound tough in press conferences, but still accommodate the politicians with easy money. The truth is that without free, unlimited money, they would actually have to make hard choices. Imagine that! The horrifying thought of having to choose between ice-cream and chocolate cake, instead […]

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Investors Still Buying Gold as Precious Metals Defend Gains

Wholesale market prices for Buying Gold dipped below $1770 per ounce Monday morning in London, but remained less than ten Dollars below their six-month high hit last Friday, the day after the US Federal Reserve announced a third round of quantitative easing. Prices for Buying Silver fell to around $34.50 an ounce this morning – 1.3% off Friday’s high – as stocks and industrial commodities also edged lower and major government bond prices rose. “Precious metals are for the most part defending the gains they have made in recent days,” says Commerzbank in its morning commodities note. “Gold is still pretty bullish this week,” agrees Phillip Futures analyst Lynette Tan in Singapore. “I think Gold […]

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Hedge Fund Silver Positions

| September 17, 2012 | Articles: Gold Silver Prices
Hedge Fund Silver Positions

Here is the latest breakdown of the hedge fund positions in the Silver market at the Comex based on Friday’s COT data. Speculative money flows continue into Silver as hedge fund managers position themselves further on the long side of the market and continue reducing their short side exposure.   Author: Dan Norcini  

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Chart of the day on September 14th – Gold

Chart of the day on September 14th – Gold

Open Interest and Volume are both rising together on the daily chart in Gold, which historically has been healthy for a continuation in the trend.  See right hand side 6 month daily chart below.  I don’t have any near term resistance other than the round number 1,800. The 30 minute chart, see left hand side below had two 30 minute bars with approximately 50,000 contracts traded in the past six trading days. Open Interest increased in Gold futures 5,594 contracts yesterday, so this rally is not primarily “short covering”.  You cannot have an increase in short covering with open interest rising.  New shorts on a NET basis are being placed, with new longs, […]

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Bonds Might Have Topped Out, for Good

| September 15, 2012 | Articles: Gold Silver Prices
Bonds Might Have Topped Out, for Good

Today’s price action in the long bond is highly suggesting that the multi-decade bull market in US bonds is over. The inflationary impact off three successive experiments in Quantitative Easing has seemed to have finally gotten the attention of that endangered species once known as the bond vigilante. Remember, this latest round of QE is not targetting US Treasuries but rather agency debt. That removes a major source of demand. With the US Dollar falling apart thanks to a deliberate attempt by the Fed to debauch it, buyers, particularly foreign buyers, are going to demand higher rates to compensate them for the currency risk. Either way, today is shaping up […]

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Bernanke pours US economy another tall stiff drink

| September 15, 2012 | Articles: Gold Silver Prices
Bernanke pours US economy another tall stiff drink

As expected, Federal Reserve Chairman Ben Bernanke didn’t disappoint yesterday: “QE3” is here at last, though it wasn’t called that by him. The Fed is now committed to open-ended purchases of $40 billion’s worth of mortgage-backed securities (MBS) a month in order to stimulate the housing market and to keep long-term interest rates subdued. The FOMC also pledged to persist with “Operation Twist” (swapping short-term US government debt for longer-duration paper) and prolonged its forecast for how long it will keep interest rates at record lows. The Fed promised to keep rates at current levels until the summer of 2015, where previously it has cited 2014 as the outer limit. “QE […]

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Perma-QE: Lessons from Bernanke’s Latest Splurge

After months of “quanticipation“, the Federal Reserve has finally done it. Ben Bernanke yesterday announced another round of asset purchases. The much-vaunted third round of quantitative easing (QE3) is now a reality. And this time it’s permanent (or, at least, open-ended). First, let’s get the details out of the way: The Fed will buy $40 billion of mortgage-backed securities per month. This policy will continue indefinitely, depending on the state of the economy. The Fed will continue Operation Twist, aimed at lowering longer-term Treasury yields, until the end of the year, while also continue its policy of rolling over maturing mortgage-backed securities. As a result, Fed asset purchases will total […]

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Gold & Silver Prices Today On Fire

Gold & Silver Prices Today On Fire

What a day for gold and silver … September 13th 2012 could become a historic day for the precious metals. At the center of the stage today was the US Fed meeting and the announcement of their decisions by Mr Bernanke at 14h15 EST.  Here is what came out of it in a nuthsell: A new round of quantitative easing was decided, with a key objective to decrease the unemployment rate in the US.  Mr Bernanke said that “We’re looking for ongoing, sustained improvement in the labor market”. He calls the current unemployment rate of approximately 8% a “grave concern.” The monetary stimulus includes 40 billion US dollar per month […]

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The Fed and the ECB determine to Destroy the Middle Class

| September 13, 2012 | Articles: Gold Silver Prices
The Fed and the ECB determine to Destroy the Middle Class

While Wall Street cheers the actions by the Fed to further enlarge its already bloated Balance Sheet, those of us who live on Main Street should get accustomed to further increases in our food and energy costs. What I find rather perverse, is the statement by the FOMC that “longer term inflation expectations remain stable”. Yeah, maybe on the salaries and wages front but sure as hell not on the raw materials front. Take a look at where hedge fund money is now flowing – right back into the hard or tangible assets category again. Get used to higher gasoline and heating oil prices and brace yourself for the food […]

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