RSSCategory: Articles: Gold Silver Prices

Gold and Silver Continue Marking Time

Gold and Silver Continue Marking Time

Both Gold and Silver remain in consolidation patterns with tightening ranges as speculative HOT money flows which are exiting are being met by value-based buying and accumulation by stronger hands. The loss of speculative interest in the precious metals over the last few months can be seen by the steady decline in overall open interest (the number of contracts open). Generally speaking, whenever speculators are interested in establishing positions in a particular market, the open interest will rise. When they are not, the open interest will fall. Look at the following open interest chart of gold and tell me which of the two above-mentioned possibilities is occuring? Answer – speculative […]

Continue Reading

Gold Bullion Shrugs Off Nonfarms, But Still Records Weekly Loss

Gold Bullion Shrugs Off Nonfarms, But Still Records Weekly Loss

Gold Bullion prices climbed to $1596 per ounce during Friday morning’s London trading, recovering some ground following three days of losses, as stock markets also rebounded ahead of the release of US nonfarm payrolls data later today. Silver Bullion climbed back above $27.30 per ounce, in line with where it closed two weeks ago, while other industrial commodities also edged higher. Heading into the weekend, Gold Bullion looked set for a 1.7% weekly loss by Friday lunchtime in London. Gold Prices fell sharply on Wednesday following a better-than-expected ADP Employment report, a privately-produced precursor to today’s official nonfarms figure. Gold then fell again Thursday along with the Euro, after the […]

Continue Reading

Silver Suffers The Most From Bernanke And What Is Next

Silver Suffers The Most From Bernanke And What Is Next

While the exchange traded funds for gold (NYSEARCA: GLD TRADING –  GLD QUOTE) and copper (NYSEARCA: JJC) fell today due to investors expressing disappoint at the modest response of the Federal Reserve to declining economic growth, it was silver (NYSEARCA: SLV Trading, SLV Quote) that was off the most. SPDR Gold Shares (GLD) fell in trading today by 0.89%.    IPath Dow Jones Copper (JJC) dropped 1.89%.  Plunging the deepest was iShares Silver Trust (SLV), off by 2.14%. Traders were hoping for more aggressive action by Federal Reserve Chairman Ben Bernanke.  But that will not come until after the November elections in the United States.  Remember that Quantitative Easing 2 did not begin until November 2010, […]

Continue Reading

Expectations of Central-Bank Action Driving Gold Investment

Expectations of Central-Bank Action Driving Gold Investment

Wholesale prices for Gold Investment bars struggled just above $1600 per ounce in London on Thursday, after dipping below that level for the first time in a week as the US Federal Reserve left monetary policy unchanged yesterday. “You can say that immediate QE is off the table,” reckons Frank McGhee, head of precious metals trading at Integrated Brokerage Services in Chicago. “I will probably not be surprised to see them not do anything in September either,” he adds. The Bank of England followed the US Fed in leaving UK policy unchanged in its midday announcement today. The European Central Bank was also expected to make no change to its record-low rates […]

Continue Reading

Gold and Silver Breaking Out Before Fed Meeting: Will It Hold?

Gold and Silver Breaking Out Before Fed Meeting: Will It Hold?

Despite the pandemic of negativity recently with regard to economic growth, we should listen to the market rather than the messages of the media.  The equity markets are telling us that despite all of this gloom, one can note positive technical developments.  Let’s look at the tape and resist the bourses function in confusing and misdirecting the investor. Noted with interest is the persistence of the Dow Jones Industrial Average to remain above the 200 day moving average.  Similarly, the 50 day moving average is in a persistent upward converging.  Of all things, the charts indicate the possibility of a constructive technical breakout into new three year highs  Could it […]

Continue Reading

Caution ahead of the Fed

Caution ahead of the Fed

With all the hype preceding this week’s Fed meeting, not to mention the usual circus atmosphere surrounding some potential action from the ECB, my advice to both gold and silver traders is to be EXTREMELY CAUTIOUS. The market has worked itself into a tizzy in my view as it salivates at the further prospect of additional liquidity measures being undertaken by both Central Banks. When markets are in this state of mind, you will end up either being a HERO or a ZERO. In other words, you are now in the precarious position of having your fate determined by the roll of the dice. If you get it right, and […]

Continue Reading

Gold Prices could be under pressure from Central Bank Meetings

Gold Prices could be under pressure from Central Bank Meetings

Gold Prices held steady above $1620 per ounce during Tuesday morning’s London trading, while stocks and commodities were also broadly flat and major government bond prices ticked higher with markets looking ahead to key central bank policy decisions later in the week. Silver Prices meantime hit a four-week high at $28.47 per ounce. “With wider markets setting the flow direction for [gold] bullion, underlying demand for the metal remains soft and has barely provided any significant direction,” says a note from Swiss precious metals refiner MKS. “Gold may come under some pressure in the run-up to this week’s central bank meetings,” adds a note from Australian and New Zealand bank ANZ, referring […]

Continue Reading

Pressure and energy building in gold market

Pressure and energy building in gold market

Gold and silver had solid finishes to the end of last week, with the yellow metal posting another positive weekly run – settling at $1,621, at the top end of the channel in which it has been trading for close to three months now. Silver had a wild session, starting around $27.50 before gaining around 30 cents, then losing 40 cents in one crazy hour of selling early afternoon, before recouping some of these losses on rumours of fresh liquidity injections from the European Central Bank, to close the week just shy of $27.70. Eric De Groot has some good new technical analysis of the gold price. As his charts […]

Continue Reading

Gold Bullion Investors Playing Waiting Game Ahead of ECB and Fed Meetings

Gold Bullion Investors Playing Waiting Game Ahead of ECB and Fed Meetings

Gold Bullion prices dipped below $1620 per ounce during Monday morning’s London session – slightly below where they ended on Friday – while stocks gained and US Treasuries fell, with markets focused on key monetary policy decisions due later in the week. Silver Bullion hovered around $27.70 an ounce – in line with last week’s close – while other commodities were also broadly flat. German 2-Year government bond yields hit a new record low this morning, falling further below zero to -0.096% ahead of an auction of Italian 10-Year debt. German bund yields then climbed higher, although remained in negative territory, after Italy successfully sold just under €5.5 billion of […]

Continue Reading

Weekend Update: Gold Breakout

Weekend Update: Gold Breakout

Gold made a breakout from a significant multipoint triangle consolidation pattern, see right hand chart below.   The main focus for me going into next week is on long trade setups in GC in the smaller degree timeframe as long as we are above the breakout area.  The pressure next week should be on the bears. What is important to mention is that I do not have any plan to put on an intermediate term trade until the major upper trendline of the dominant “descending triangle” pattern has been taken out with authority. I have no issues paying up in order to increase my probabilities for longer term success. In the near term, […]

Continue Reading

Gold Bullion Prices Testing Important Level

Gold Bullion Prices Testing Important Level

The past 48 hours the stocks market has been on verge of a major meltdown in my opinion. The people with power who manipulate the markets are trying their hardest to hold prices up. Yesterday we saw rumors about the Fed I the WSJ that they wanted to do more easing ASAP. That news could not have come at a better time as it saved the day/markets from more heavy selling. That news also helped prop gold bullion prices up. Take a look at the 4 hour candle stick chart for a visual: Now look at what Mario Draghi’s comments have done with spot gold prices in the daily chart […]

Continue Reading

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 […]

Continue Reading

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 […]

Continue Reading

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 […]

Continue Reading