RSSCategory: Articles: Gold Silver Prices

Follow up on Gold Chart

Follow up on Gold Chart

This chart is a follow up to the comments made on the prior post here. “Head and Shoulders” and “Bear Pennant” drawings have been included on the left hand side 30 minute chart.  “Descending Triangle” on the daily right hand side is quite menacing. It continues to amaze me how prior supply or demand gets shut off when targets get reached.  This is a great example of why I take my profits and move on (as well as take my losses and move on). If you took the profit on the H&S, you can re-enter on the Pennant for further follow through.  When you exit the Pennant it then becomes a matter of again objectively identifying market […]

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Update chart on gold price

Update chart on gold price

This post is in response to a question from reader Trystan on the flag continuation pattern post here : 1.  Bull flag had a breakout on “weak” volume. 2.  There has now been a normal throwback to the breakout area due to the weak volume breakout. 3.  A rising trendline has been tested allowing a stop to be trailed AFTER the reaction in order to reduce the risk in lieu of a weak volume breakout. 4.  A failure to take out the recent high near 1643 could also form a potential bearish “Head and Shoulders”, but it is very early, there is no H&S or bearish play here.  (My mind has seen patterns […]

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Ben Bernanke’s mission impossible

Ben Bernanke’s mission impossible

Stocks and commodities performed strongly yesterday, helped by chatter about plans for a eurozone “banking union”, whereby the European Commission in Brussels would take the lead on banking legislation from European Union member states. European stocks had one of their strongest up days of the year in response, while the Dow recorded its strongest session of the year – up nearly 2.5% to 12,414. The euro gained 1% against the dollar, moving back above $1.255. Crude oil and gold also put in strong showings – at one stage gold moving just above $1,640 – though the yellow metal lost ground later in the session following unexpectedly optimistic Federal Reserve comments […]

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Bernanke Speaks, Gold Prices Fall

Bernanke Speaks, Gold Prices Fall

LESS THAN a week after they climbed back above $1600, Gold Prices fell back below that level on Thursday, as Federal Reserve chairman Ben Bernanke appeared before Congress at the Joint Economic Committee. This is not the first time we’ve seen this, notes Ben Traynor at BullionVault. Back on February 29, gold fell $100 an ounce while Bernanke was testifying before the House Financial Services Committee. What on earth is the man saying to have such an adverse impact on Gold Prices? Well, on the two occasions cited above, it wasn’t what he said, but what he failed to say that did the damage. In short, Bernanke failed to make any explicit promises of further Fed quantitative […]

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Gold Prices Drop 2.6%, Silver Loses 4.1% as Bernanke More Moderate Than Dovish

UPDATE, 15:00 GMT – Wholesale Gold Prices tumbled Thursday afternoon in London as the US Dollar rallied and stock markets cut their earlier gains on what analysts called “disappointing” comments from US Fed chairman Ben Bernanke, testifying to the Senate’s Joint Economic Committee in Washington. Continuing to “maintain a highly accommodative stance…until at least the end of 2014,” Bernanke said in pre-written comments that the US central bank is “prepared to take action as needed to protect the US financial system and economy in the event that financial stresses escalate.” However, “The economy’s performance over the medium and longer term also will depend importantly on the course of fiscal policy,” he added, noting […]

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Gold Prices Break Above Bear Channel, But Gold Needs Professional Traders Back

Gold Prices Break Above Bear Channel, But Gold Needs Professional Traders Back

Gold Prices hit a one-month high at $1640 per ounce ahead of Wednesday’s US session – up more than 7% from May’s low – while stocks, commodities and the Euro also ticked higher and major government bond prices fell, with London markets open again after a two-day public holiday. Silver Prices climbed to over $29.50 an ounce – a 3.3% gain on the week so far, and a near 10% rise from last month’s low. “[Gold] is consolidating last Friday’s aggressive move from $1546 to $1629,” says the latest technical analysis from bullion bank Scotia Mocatta. Barclays Research meantime note that Gold Prices have broken above its “2012 bear channel”, adding that gold has […]

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EU treaty talk calms markets

EU treaty talk calms markets

Precious metals had a quiet day yesterday, with gold and silver both consolidating following Friday’s rally. Gold continues to face resistance at $1,625, while $28.50 remains a point of selling pressure for silver – as has been the case now for the best part of the last month. James Turk sums up Friday’s gold and silver strength in a new King World News interview: “even though stock markets around the world the past few weeks have generally been in a nosedive, gold, silver and the mining shares are climbing higher. Independent strength like this is normally very bullish, and it bodes well for the precious metals and mining shares in the […]

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Continuation Pattern developing on Gold

Continuation Pattern developing on Gold

The 30 minute chart is shaping up to a “Bull Flag” pattern.  There is no confirmation of the pattern yet, which would be a breakout or liftoff from the top trendline in the flag on an increase in volume.  Trading early in anticipation of breakouts is a mistake in my book.  I would prefer to see liftoff from the flag during the Comex session.  The target or “Measured Rule” of a bull flag is the length of the flag pole/mast added onto the breakout point which would be approximately 80 points which puts gold back in the $1,700 per ounce level and it would also put gold near resistance of the downward sloping trendline of the […]

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Gold Achieves that ” 16 ” Handle

Gold Achieves that ” 16 ” Handle

Gold’s reaction to the payrolls number this morning was instantaneous – it shot up as if it was fired out of a cannon! As stated in the post on the mining shares this AM, gold is now fully expecting the Fed to move forward with a round of QE3 Sooner rather than later. It is this anticipation of a Fed move that has it blowing the recent hedge fund short positions out. Not only that, the ability to capture this elusive “16” handle and HOLD IT, has fresh money that has been sitting on the sidelines or in Treasuries (obtaining next to nothing for yield) willing to come in on the […]

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Bear-market growl grows louder

Bear-market growl grows louder

The last 24 hours have been brutal for stocks, commodities and the euro, with news that depositors yanked close to €100 billion out of Spanish banks in the first three months of the year – the fastest drawdown since Spanish records began in 1990. The Italian unemployment rate is now above 10%, and European Central Bank chief Mario Draghi is warning that the eurozone is “unsustainable”. US Q1 GDP growth was revised down from 2.2% to 1.9%, emphasising that the US economy is once again slowing, while claims on unemployment benefits increased by 13,000 when economists had expected no increase. To top it all off, data this morning shows UK […]

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Gold Prices Decouple from Euro But End May 5.3% Lower

Gold Prices steadied Thursday morning in London, holding onto yesterday’s sharp jump and cutting this week’s 2.5% drop by two thirds so far even as the Euro currency again slipped through $1.24 for the second day running. Trading near $1564 per ounce, however, Dollar Gold Prices headed towards their fourth monthly drop in succession, losing some 5.3% in May. Silver Bullion neared month-end more than 10% lower from end-April, after rallying above $28 per ounce Wednesday afternoon in London when the Euro first slipped to fresh two-year lows. Down some 16% on Bloomberg data, US crude oil was on track for its steepest monthly drop since December 2008. The MSCI index of global stock […]

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European debt woes push dollar higher

“Spexit” – short for a Spanish exit from the eurozone – is the new word leaping of the tongues of market analysts, with investor attention centred on problems in the Spanish banking sector. Though the European Union has offered Spain more time to sort out its budget problems, news that Madrid will have to fund the Bankia bailout by selling more government bonds sent Spanish and Italian bond yields shooting higher yesterday, with Spanish 10-year debt hitting 6.65% and equivalent Italian debt climbing 15 basis points to 6.02%. Economists regard the 7% mark as a critical threshold as far as borrowing is concerned – Greece, Portugal and Ireland all received […]

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Monthly Gold Charts for May 2012

Monthly Gold Charts for May 2012

I do want to note that since we are facing a very similar set of deflationary factors at the current time as we did back in 2008 when the credit crisis first erupted, that time frame is an analogous year and for that reason provides at least some sort of frame of reference for a guide to price action. Using MONTHLY CLOSING PRICES only, gold fell from a peak of $975 down to a low of $715 or a drop of 26.5% from it best monthly closing price BEFORE THE FED made clear that a round of Quantitative Easing would commence. You will recall that the purchases consisted mainly of […]

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Gold in a precarious position

Gold in a precarious position

There is a balance area tightening in the smaller degree 1 hour timeframe over the past two weeks.  This demands my attention normally, but since we are on major support of a “Descending Triangle” that has potentially lethal ramifications to the price of gold I am on high alert for extraordinary trading opportunities. Today there was a big rally off support which is both Bullish and Bearish.  How is “both” possible?  Well it shows that there is still strong demand down here and potential “Accumulation”.  The downside is that each time support gets tested it is weakened.  How does support get weakened and not strengthened when it has been tested numerous times?  Because the demand or buying power gets depleted/frustrated or […]

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