RSSCategory: Articles: Gold Silver Prices

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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Gold Bullion will be Supported By Loose Monetary Policies

Gold Bullion will be Supported By Loose Monetary Policies

Gold Bullion rose to $1597 per ounce Tuesday morning in London – its highest level so far this week – as stock markets also ticked higher following news that Spain should receive some financial assistance for its banks later this month. Silver Bullion also gained, climbing as high as $27.61 per ounce, while other commodities were broadly flat. US, UK and German government bond prices fell, while on the currency markets the Dollar gave back early gains against the Euro, with the latter rallying back above $1.23. “Loose monetary policies, with a scope for more aggressive balance sheet use in the US and Europe, will keep real [interest] rates in most reserve […]

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Fragile Sentiment Leaves Gold Prices Unsure Which Way to Go

Fragile Sentiment Leaves Gold Prices Unsure Which Way to Go

Gold Prices held above $1580 per ounce during Monday morning’s London trading – broadly in line with where they ended last week – while most European stock markets were broadly flat on the day, with the exception of Spain’s. Gold Prices ended down last week, falling back below $1600 on Friday, following the release of June’s US nonfarm payroll data, which showed the economy added 80,000 private sector jobs last month. Although this was lower than many analysts’ forecasts, it was higher than a month earlier. April and May’s nonfarms figures were revised higher, while unemployment held steady at 8.2%. “[Last week was] the ninth consecutive week where gold has alternated between […]

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MidWest US Drought Fueling Talk of Soaring Food Prices

The fierce drought that has gripped the lower section of the US corn belt and has been ravaging both corn and soybeans in the region has sent corn futures limit up today and soybeans for the front month July contract to a new all time high. That has sent shudders through the minds of some traders who are convinced that it is only a matter of time before all of this feeds through to the supply chain. REsult – higher grain prices meaning higher food prices in general. This phenomenon has gotten hedge funds back to buying commodities across the board this morning even with the equity markets careening lower. […]

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The gold and silver price: the week till 6 July 2012 in review

Gold and silver had a very strong start of the week, but they’ve lost all gains during the second half of the week after Independence Day on Wednesday.  The gold price saw a loss of approximately 1.5% over the week in US dollar. Gold in closed on 1584.80 dollar an ounce and 1286.46 euro. Gold saw his high during the week slightly above 1620 dollar. The silver price closed the week on 27.13 US dollar per ounce (some 2.5% lower than the close of one week earlier). In euro terms, silver closed the week at 21.99 euro. Technical view Both gold and silver have been hovering around their critical 20 and 50 day […]

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German debt problems

German debt problems

Somewhat counterintuitive action in the precious metals markets yesterday, with gold and silver coming under selling pressure despite news of easing from a trio of major central banks. As expected, the Bank of England announced a further £50 billion of quantitative easing yesterday (the UK’s own “QE3”), which will bring the BoE’s total QE since 2008 to £375bn. Elsewhere, the European Central Bank and the People’s Bank of China cut interest rates. The ECB cut its short-term lending rate to a record low of 0.75% – down from 1.0% – while the PBC announced a 0.31 percentage-point cut in its one-year yuan-lending rate, to 6% (which seems like a crazily […]

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Payrolls Number Disappoints – Risk Off

Payrolls Number Disappoints – Risk Off

If you recall one month ago, when we got that abysmal jobs number, gold initially moved lower, only to then rebound with a ferocity that caught market watchers and traders completely off guard. Risk off trades were being slammed on as longs bailed out and bears began pressing the downside. Literally, on the drop of a dime, the entire complexion of the market reversed with the bears running for their lives as new longs entered the fray. The reason – the number was so crappy that everyone just “knew” that the Fed was going to immediately launch the next round of QE. In other words, the more rotten the economic […]

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Currencies Don’t Make Gold Look Good

Currencies Don’t Make Gold Look Good

Let’’s start by stating that the title of this essay refers to the current situation on the gold market – not to the long-term fundamental picture. In fact, up to this day, no paper currency has survived in its original form while gold has been used as money since time immemorial. Every fiat currency since Roman times has ended in devaluation and eventual collapse, of not only the currency, but often of the host economy. The usual course of events is that paper currencies are inflated away until worthless. The purchasing power of the US dollar, for example, has declined by 90% since 1950, also true for most currencies. The […]

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