RSSCategory: Articles: Gold Silver Prices

Breakout in Gold

Breakout in Gold

Those who may have to unwind a losing leveraged short position are in a really bad spot. There is not enough volume to confirm a breakout, but Comex hasn’t opened yet. This is a significant multipoint trendline and the Bears have a herculean task ahead of them to reverse this near term change in trend, especially if the volume picks up as price moves higher.   I believe the most probable area of next resistance is around the $1650, which is both a prior “high volume node”, and also where it would intercept a major descending trendline in the bigger picture.   My most previous post on gold and a view of the bigger picture trendline can be found […]

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Gold Clears $1600 – Psychological Boost to Bulls

The ability of the gold market to push a “16” handle on the price can be considered a minor victory for the bulls. You can see from the chart below, that within its broader consolidation pattern, gold had been experiencing a somewhat tightening or constricting of its range. The upper boundary of that “mini-pattern” has been the $1600 level. The ability of the bulls to take it through this region gives them a very slight advantage over the bears in the immediate term and provides the possibility of a push towards more stubborn resistance beginning near the $1620 level. Keep in mind that every bit of today’s move higher was predicated […]

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Gold Prices and Euro Edge Higher, Fed Moving Closer to more QE

Gold Prices and Euro Edge Higher, Fed Moving Closer to more QE

Gold Prices rallied above $1590 per ounce Wednesday morning in London – moving within 2% of July’s high – as European stock markets edged upwards despite Spanish government borrowing costs hitting new record highs. Silver Prices rallied to $27.20 per ounce – though unlike gold, silver remains down on the week so far. The Euro rallied against the Dollar in early European trading, following a press report that suggested the Federal Reserve could be moving closer to more monetary stimulus. On the commodities markets prices were broadly flat this morning. Platinum continued to trade below $1400 an ounce, with the gap between platinum and Gold Prices bigger than at any time since January. The […]

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Precious Metals Succumbing to Deflationary Forces Today

Precious Metals Succumbing to Deflationary Forces Today

Both Gold and Silver are under selling pressure today as the sell off in the grains seems to have pushed a large amount of hot money out of the commodity sector. Soybeans are currently locked at limit down as is the front month corn contract. Talk that Smithfield is importing corn from Brazil has sent supply side bulls scurrying for cover and demand side bears are pressing their case. The pool in the July was 112K at one time and is now down to 26K currently. In the November Beans, the pool is at 37K as I write this. Traders had been bidding up commodities in general of late as […]

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Euro Gold Prices Making Gains on Dollar Strength

Euro Gold Prices Making Gains on Dollar Strength

Gold Prices drifted down to $1573 per ounce Tuesday morning in London – a few Dollars above last week’s low – as stocks and commodities also ticked lower, while US Treasuries were flat and German bunds fell after Germany’s credit rating was placed on negative outlook. Silver Prices briefly dipped below $27 per ounce – 1.2% below where they began the week. On the currency markets, the Euro briefly dropped below $1.21 for the second day in a row, while Euro Gold Prices hovered around €1300 per ounce – 3.2% off its six-month high. The Gold Price in Euros has gained 8% since the middle of May. “Thanks to the Euro’s depreciation vis-a-vis the US Dollar, […]

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US Debt Reaching Bubble Like Territory

US Debt Reaching Bubble Like Territory

Treasuries are climbing parabolically as a supposed safe haven as the European debt crisis remains at center stage.  Spain’s debt yields are reaching a record and Moody’s is lowering their credit rating outlooks on Germany, Netherlands and Luxembourg.  Capital is seeking a safe place to hide. Many are choosing the U.S. dollar and U.S. treasuries as the Fed continues manipulating long term treasuries through Operation Twist until at least the end of the year.    This has come aftertwo rounds of $2.3 trillion dollars of QE.  This was supposedly set up to stimulate the global economy.  So far this has not happened. We have an inflated treasury market and an […]

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Silver is looking over the edge…

Silver is looking over the edge…

Silver is looking over the edge of what looks like the “Grand Canyon” on the 1 year daily chart, see right hand side below. I have highlighted the past three month price action on the daily chart, see left hand side below.  In the near term these trendlines in the recent price action are key reference areas for me. Should the lower “minor” trendline support break on that 3 month chart, the big deal will then become the $26 horizontal price level or MAJOR SUPPORT. I am a strong believer in precious metals as money, savings, and an insurance vehicle, and I have also been looking to buy for the intermediate and long term, this […]

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Stronger Dollar the Great Danger to Gold Bullion Prices

Stronger Dollar the Great Danger to Gold Bullion Prices

Gold Bullion prices quoted on the wholesale market fell to $1569 per ounce Monday morning in London – 0.9% off where they closed last week – as stocks, commodities and the Euro also traded lower and US Treasuries gained, following news that two Spanish regions plan to ask for bailouts. Silver Bullion fell to $26.88 an ounce – a 1.9% drop on where it ended Friday. Volumes of Gold Bullion held by exchange traded funds (ETFs) saw net losses last week, while on the currency markets this morning the Euro hit a new two-year low against the Dollar Monday, dropping below $1.21. As a result, the US Dollar Index, which measures the Dollar’s strength […]

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Gold Price Range Flat and Contracting

Gold Price Range Flat and Contracting

The Gold Price traded in a narrow range above $1580 per ounce Friday morning – in line with where it has spent the last two weeks – while stocks and commodities ticked lower and US Treasuries gained, as market attention returned to the European debt crisis, currently focused on Spain. The Silver Price dipped to $27.07 per ounce, though it too remained firmly within its range for the last fortnight. Based on Friday afternoon London Fix prices, the Gold Price has alternated between up and down weeks since the week ended 11 May. A Gold Fix below $1595.50 per ounce this afternoon would see this pattern extended for a tenth […]

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Complex “Head and Shoulders” a “Cup with a handle” on Dollar Index and the Gold Triangle

Complex “Head and Shoulders” a “Cup with a handle” on Dollar Index and the Gold Triangle

Interesting topping pattern on the Dollar Index in the near term 30 minute chart, see left hand side chart below.  This is a complex bearish “Head and Shoulders” reversal pattern.  All of the right shoulders off the head have held their stop losses so far. The big issue is really the Weekly chart, see right hand side below.  There is a very bullish “Cup with a Handle” pattern.  Weekly charts are “numero uno” when it comes to understanding order flow from the larger degree timeframe traders.  Since the breakout there has been a few profit taking “Throwbacks” to the breakout area.  This cup with a handle is the dominant pattern and should […]

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Poor Monsoon and Summer Doldrums Hit Demand to Buy Gold

Poor Monsoon and Summer Doldrums Hit Demand to Buy Gold

US dollar prices to Buy Gold rose 1.3% from yesterday’s 1-week low Thursday morning in London, recovering $1590 per ounce as world stock markets also rallied. Silver Prices outpaced gold, adding 2.2% to $27.55 per ounce, but the Euro failed to rise above $1.23 for the fourth time in a week. Spain had to pay 5.2% per year to raise new loans due to mature in 2014 – up from 4.3% at June’s auction of 2-year bonds. German Bunds meantime continued to offer investors less-than-zero as prices rose further, squashing the yield on Berlin’s 2-year debt to minus 0.05%. German inflation was last seen at 1.7% per year. Brent crude oil today rose to a 7-week high […]

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QE delay risks turning Fed into a political football

QE delay risks turning Fed into a political football

Another Ben Bernanke performance in front of the US Senate momentarily caught the attention of financial markets yesterday, up until the point when it became clear that the Fed wouldn’t be liquoring up the joint with more QE just yet. Despite the litany of bad economic stats in the US over the last three months or so, Bernanke noted that “we haven’t really come to a specific choice at this point” (regarding more stimulus), though he commented that “we are looking for ways to address the weakness in the economy should more action be needed.” Over at The Big Picture blog, Peter Boockvar summed up the state of play regarding the […]

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Playing the Gold Price Averages in Summer 2012

Playing the Gold Price Averages in Summer 2012

It’s a hardy perennial for anyone studying the gold market, writes Adrian Ash at BullionVault. And with the British summer being more like November this year, very hardy perennials are just what is needed. But will the Gold Price blossom on schedule? Greener than George Monbiot’s socks, we’re happy to recycle this fact yet again. The Gold Price tends to display a seasonal pattern – rising in spring, slipping or flat-lining in summer, only to rise once more in the fall and then winter. No, the pattern was shot in 2011 as we noted last July. But such profitable “summer sales” have occurred most frequently during longer-term bull phases, as we told the Financial Times in 2009. For Dollar investors, Buying Gold even […]

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QE uncertainty sees Gold Prices drift lower

QE uncertainty sees Gold Prices drift lower

Gold Prices drifted lower during Wednesday morning’s trading, dropping below $1580 per ounce, while stocks and commodities were broadly flat on the day and US Treasuries gained, as markets continued to digest yesterday’s testimony to Congress by Federal Reserve chairman Ben Bernanke. Like gold, Silver Prices also eased, falling as low as $27.04 per ounce in Wednesday morning’s London trading. A day earlier, Gold Prices fell 1% in an hour on Tuesday after Bernanke began his testimony. Although the Fed chairman said monetary policy is “still on a loosening cycle”, there was no clear mention of a third round of asset purchases, known as quantitative easing. “The bull camp in gold wanted to see more […]

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