RSSCategory: Articles: Gold Silver Prices

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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Gold Prices Could Break $1600 if Bernanke Hints at Easing

Gold Prices Could Break $1600 if Bernanke Hints at Easing

Dollar Gold Prices rose as high as $1598 per ounce Tuesday morning in London, their highest level so far this week, as markets prepared for Federal Reserve chairman Ben Bernanke’s appearance before Congress later today. “Gold is trading in a range between $1550 support and downtrend resistance, currently at $1614,” say technical analysts at bullion bank Scotia Mocatta. “The trend has been sideways since early June, but the downtrend from the March highs remains intact.” Silver Prices also saw gains this morning, hitting $27.70 per ounce, while commodities in general were broadly flat. European stock markets edged higher – with the exception of the FTSE in London. A day earlier, Dollar Gold Prices saw a […]

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The Next Major Move in Precious Metals Is Close

The Next Major Move in Precious Metals Is Close

After making new highs about a year ago we have seen Silver and Gold consolidate for roughly the last twelve months.  Technically, it would typically be a bullish scenario with gold from the stand point that the last 12 months’ price action was a sideways consolidation in a bullish pennant formation.  However over the last year we have witnessed a series of lower highs and increasingly tested supports levels around $150 on GLD which raises caution. With the fed pulling any extensions on further quantitative easing in the form of QE3 or other programs, the bullish case has lately been criticised.  However I am still a firm believer that gold […]

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Gold once again reacts at critical trendline

Gold once again reacts at critical trendline

One of the great futures battles between the bulls and the bears is taking place in gold futures recently.  The daily chart right hand side below has once again seen gold react at an important multipoint trendline.  This is now “significant” trendline support.  It won’t be long before the upper or lower trendline is faced with another test. The chart is what I would refer to as “ripe” for an “Initiative” type move into “Vertical development” or a market that has potential to be in “Imbalance”.  A market that is in imbalance is a market that does not have enough offers or bids to meet large orders that come in “at […]

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Gold Price: Flat from a Year Ago

Gold Price: Flat from a Year Ago

Friday the Thirteenth saw the Gold Price in Dollars do something it’s managed only 7 times in the last 11 years, writes Adrian Ash at BullionVault. Gold traded flat from 12 months before. If you bought on 13 July 2011, you hadn’t made a dime by the time New York got itself showered and brushed its teeth this morning. You held just the same Dollar-value one year later – basis the London AM Fix – at $1579 per ounce. Between then and now, in fact, anyone Buying Gold to insure, hedge or speculate-to-accumulate with their Dollar savings was more than likely to have paid a higher price, too. The Gold Price in Dollars has been higher than it […]

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Gold Price Slips on Fed Disappointment But $2000 Still the Right Number on Forecasts for Fresh QE

Gold Price Slips on Fed Disappointment But $2000 Still the Right Number on Forecasts for Fresh QE

The Gold Price continued to weaken Thursday morning in London, dropping to new 2-week lows beneath $1565 per ounce on what analysts called “disappointment” with the latest monetary policy minutes from the US Federal Reserve. Asian and European stock markets fell hard, while wheat and corn prices again bucked a further drop in the commodities market. Following the US Fed minutes – which showed only a “few” policy-makers wanting to expand the central bank’s quantitative easing money creation scheme – the Euro currency today dropped to its lowest level since June 2010 below $1.21. Silver Bullion also gave back the last of July’s rally to date, trading back below $27.75 per ounce. “We […]

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Inflation Reemerging: Food Prices Gapping Higher, Precious Metals May Follow

Inflation Reemerging: Food Prices Gapping Higher, Precious Metals May Follow

An old melody advises us to look for the silver lining whenever dark clouds appear in the blue.  There is economic and political upheaval all over the world.  So we direct our attention to an area where silver is shining.  Poor man’s gold may come into prominence shortly and provide our subscribers with possible profits.  See the video below why supply may be disrupted over the next several years and why we may be facing hyper inflation. The price of food is beginning to soar and this may be showing early signs of a global inflation.  Could silver and gold follow food prices higher an as Central Banks worldwide fight […]

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Gold is coming to a fork in the road…

Gold is coming to a fork in the road…

The multipoint trendline resistance that I have touched on in the recent posts on the blog has indeed been “concrete”.  Gold has also been making higher highs at the same time, and the pattern is pinching to a point where one side of supply or demand is likely to run the other over.  There is no way to predict which way it goes.  I only care about positioning myself on the winning side, or with the strong hands of the current “Open Interest” once gold enters the next phase of “vertical development”. The picture of the daily chart, right hand side below, is one of “extreme tension”.  Any swing/position trade, long or short, being placed inside this pattern is […]

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US Dollar Looks Strong

US Dollar Looks Strong

The rally in the US Dollar continues not out of any particular set of strong fundamentals in the US but rather out of a general aversion to the Euro and by consequence, to the European currencies. While the Fed seems to be basically standing pat for the immediate moment, the Bank of England has announced another round of its bond buying program while the ECB has lowered rates. Given that backdrop and the lingering fears and uncertainty over the bailout mechanism put in place by the European finance ministers and political leaders, traders continue to bid up the Dollar. This buying is a reflection of the unease among traders over current […]

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