RSSCategory: Articles: Gold Silver Prices

Weak Euro Keeping a Lid on Gold Bullion Ahead of EU Summit

Weak Euro Keeping a Lid on Gold Bullion Ahead of EU Summit

Gold Bullion prices dipped below $1570 per ounce during Monday morning’s London trading, though they remain broadly in line with last week’s close, with markets focused on this week’s European leaders summit. Gold Bullion is now at levels similar to those seen in the second week in May, when gold fell through $1600 for the first time in 2012. “Gold has essentially been in a sideways range for the past seven weeks,” says the latest technical analysis note from bullion bank Scotia Mocatta. “We will need to see a break through the low at $1526 to get a bigger directional move.” Silver Bullion hovered around $26.80 an ounce – a slight dip on where […]

Continue Reading

Silver is approaching MAJOR support

Silver is approaching MAJOR support

I have received requests for commentary on silver.  The pattern in silver is very similar to gold.  There is a baleful “Descending Triangle”.  Below is a weekly chart of silver.  Weekly charts in my opinion are the “Ace of Spades” in charting, meaning nothing over rules them, not even the monthly chart. I would like to load up on some silver eagles/maple leafs, so a breakdown and follow through in the triangle will be welcomed by me.  I also have no issues shorting silver in the smaller degree timeframes to pay for those eagles/leafs upon this development.  Right now we are approaching MAJOR support. Would it be a better idea to pay attention to the […]

Continue Reading

Is Gold About to Rally? USD Index and Crude Oil Prices Suggest Otherwise

Is Gold About to Rally? USD Index and Crude Oil Prices Suggest Otherwise

Congratulations. Let’s all take a collective deep sigh of relief. Instead of a new crisis, we’re just going to keep having the same old one. Greeks voted to stay in the European Union with a narrow victory for the center-right New Democracy party. A global crisis has been averted—for now. But as we take a deep sigh of relief let’s keep in mind that the euro is already on a slippery slope to oblivion. Let’s face it. A Greek exit is already a forgone conclusion for many. Now it’s Spain’s turn to headline with its bond yields soaring to new euro-era highs. Spain’s economy is almost twice the combined size […]

Continue Reading

Gold & Silver on the Verge of Something Huge

Gold & Silver on the Verge of Something Huge

Gold and silver have taken more of a back seat over the past 12 months because of their lack of performance after topping out in 2011. Since then prices have been trading sideways/lower with declining volume. The price action is actually very bullish from a technical standpoint. My chart analysis and forward looking forecasts show $3,000ish for gold and $90ish for silver in the next 18-24 months. Now don’t get too excited yet as there is another point of view to ponder… My non-technical outlook is more of a contrarian thought and worth thinking about as it may unfold and catch many gold bugs and investors off guard costing them […]

Continue Reading

Follow up on Gold II : Risk Management

Follow up on Gold II : Risk Management

When the bearish “Rounding Top” formation completed, we could do one of three things. 1.  Get out of the way and wait for a new bullish pattern to develop 2.  Liquidate a long position (Risk Management) 3.  Go short I do not have a 4th option to check the status of OTC markets; or 5th option to check on what the “experts” have to say/predict. Do you have a trade plan for what current developments are taking place in the auction right now? The prior post discusses how I could intuitively see the current pattern before it completed.  I do not trade early in anticipation.  Preparation is for reacting at the execution stage with precision.  Preparation is for “peace […]

Continue Reading

Why the Gold Price Is Surprisingly Strong

Why the Gold Price Is Surprisingly Strong

“GOLD PRICE PLUMMETS” is the obvious headline right now, writes Adrian Ash at BullionVault. But fact is, the Gold Price has in truth been surprisingly strong so far this year. First up, the US Gold Futures and options market. These contracts rarely run to physical settlement, but still they wag the dog of physical prices near-term. Because the price of gold for future delivery of course affects how much people ask or bid for metal today. That future price, whether being set by hedge funds or chased by doctors and dentists (private traders risk getting “filled and drilled” by retail brokers, or so goes the joke), is bet on with borrowed money. So credit is a big factor. […]

Continue Reading

Follow up chart on Gold (Trade Management)

Follow up chart on Gold (Trade Management)

There are comments from me at the very bottom of the prior post that should be reviewed in this section. Basically what I said there was that this is a perfect example of why it doesn’t pay to be early in anticipation of breakouts.  Notice the grey trendline that failed on the 30 minute chart at the major multipoint trendline resistance.  There is a great lesson in “Trade Management” here. One thing that the 30 minute chart is starting to resemble is a bearish “Rounding Top” formation.  It hasn’t rolled over all the way, but I can intuitively see it as a development to keep an eye on. However the blue […]

Continue Reading

Gold Prices Fall Ahead of Fed Decision

Gold Prices Fall Ahead of Fed Decision

Gold Prices fell back towards $1600 per ounce ahead of Wednesday’s US session – 1.5% down on the week so far – while stocks and commodities were broadly flat and US Treasury bonds fell, ahead of the Federal Reserve monetary policy decision due later today. Silver Prices dropped to $28.08 an ounce – 2.2% down on last week’s close. As well as announcing its latest decisions on interest rate and asset purchases, the Fed will also publish policymakers’ economic projections, while Fed chairman Ben Bernanke will give a press conference. “We think Bernanke will talk up the Fed’s readiness to act if required and there is a chance of a policy gesture […]

Continue Reading

QE3 or Operation Twist 2: How Will This Impact Gold and Silver?

QE3 or Operation Twist 2: How Will This Impact Gold and Silver?

There is the possibility of a pandemic financial meltdown.  To avoid such a catastrophe, the Greeks elected to stay in the Eurozone.  Remember that the Federal Reserve are scheduled for a press conference today.  Some form of quantitative easing or Operation Twist 2 may come riding to the rescue in order to buttress the Greek decision to stay in the Eurozone. We believe that these decisions may become baked into the pie during this Federal Reserve Meeting.  Gold and silver traders are betting big money on buying contracts expiring in July that become profitable if gold should reach $2000 by that date.  Based on what we know is smart money […]

Continue Reading

Weak Euro Weighing on Gold Price while Eurozone Growth Plan Based on Funny Money

Weak Euro Weighing on Gold Price while Eurozone Growth Plan Based on Funny Money

The Gold Price hovered around $1620 per ounce for most of Monday morning’s London trading – slightly below where it ended last week – while stocks and commodities were also broadly flat, after initial rallies that followed yesterday’s Greek election result quickly petered out. The Silver Price drifted lower to $28.41 per ounce by Monday lunchtime in London – a 1% drop on Friday’s close – while US, UK and German government bond prices all saw gains ahead of the week’s Federal Reserve policy meeting. The Euro meantime briefly broke above $1.27 for the first time in nearly a month, before dropping by more than one cent by lunchtime. “There is a downward bias […]

Continue Reading

Waiting for the other shoe to drop

Waiting for the other shoe to drop

All was sunshine and happiness for a few short hours earlier this morning, following news that Greece’s conservative New Democracy party had won yesterday’s election, and will attempt to form a pro-bailout government with other parties. The radical left’s threat to the country’s euro membership has subsided. The euro initially rallied over $1.272, but has now fallen back sharply on the back of a continuing rise in Spanish bond yields, which reached as high as 7.1% earlier. The Italian 10-year bond is creeping back towards the 6% mark. Gold and silver came under selling pressure when news of the election results first broke, though both have recovered and remain basically […]

Continue Reading

Is Silver Currently Riskier Than Gold?

Is Silver Currently Riskier Than Gold?

Gold futures closed higher edging past the $1,600 mark Wednesday, extending their advance to a fourth session – perhaps traders considered prospects for further quantitative easing by the Federal Reserve and other central banks, including the Bank of England, the European Central Bank and the Bank of Japan. Thursday Comex gold futures prices ended the U.S. day session near unchanged in subdued trading and today Gold edged up extending its winning streak to a sixth session as sluggish U.S. data boosted hopes for monetary easing. With an agreement last weekend to bail out Spain’s struggling banks, Europe again avoided financial chaos but it still faces far bigger challenges that threaten […]

Continue Reading

UK Treasury and Bank of England liquor up banks again

UK Treasury and Bank of England liquor up banks again

Stocks and commodities have rallied this morning on rumours that central banks are about to launch a coordinated market intervention following Sunday’s Greek election. Government bond yields have fallen (relief for the Spanish and Italians), while the euro reached a four-day high at $1.2685 earlier. Gold continues to face resistance at $1,630, while $28.50 still exerts a magnetic pull on silver. However, talk from G20 officials that “central banks are preparing for coordinated action to provide liquidity” in the event that the Greek election results upset the markets is raising bullish hopes. Meanwhile in the UK, bank shares have risen after Chancellor George Osborne announced last night that HM Treasury […]

Continue Reading

Dan Norcini about addiction, excessive debt and the gold price

Dan Norcini about addiction, excessive debt and the gold price

That’s the attitude that gold bulls have apparently adopted heading into this weekend’s crucial Greece vote. Whereas yesterday seemed to be a day of caution among traders, today seems to have morphed into a day of expectations of the punch bowl, complete with accompanying hard liquor, being filled to capacity by the Central Banks of the West. If the Greece vote turns out to be one which threatens the stability of the Euro and sends shock waves through the foreign exchange markets, traders are convinced that a large bouquet of liquidity is coming their way early next week. If the Greece vote turns out to be one in which the […]

Continue Reading