RSSCategory: Articles: Gold Silver Prices

Dollar Still Makes a Negative Impact on Gold

Dollar Still Makes a Negative Impact on Gold

Remember the disaster movie, “The Day After Tomorrow,” in which melting polar ice causes disruption to the north Atlantic currents precipitating a new Ice Age? The main character, a paleoclimatologist played by actor Dennis Quaid, warns government officials of the approaching disaster, but no one heeds his warnings. One of the fears of global warming is a disruption to the nature of ocean currents that could bring profound and possibly destructive changes to our weather patterns. In economics there are also great currents that have natural patterns and it looks like they are undergoing profound changes. Weather patterns can take centuries or even eons to evolve, but in economics, things […]

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Gold Market Continues to Reflect Currency Turmoil

Gold Market Continues to Reflect Currency Turmoil

Simply put – as the situation in Europe further deteriorates (yesterday the market YAWNED at the $125 billion Spain bailout), Italy is now coming into focus. Strangely enough, the US equity markets somehow think all of this is inconsequential as the bulls there continue to be giddy with delight.Their attitude is best described by an old Steve Wariner song, “Some Fools Never Learn”. You play with the fire, you’re gonna get burned”.Considering just how tenuous things are, the degree of complacency that exists among equity bulls is nothing short of astonishing. The situation can best be described by looking at a chart of the VIX, or Volatility Index.While the index […]

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Gold Market Prices Regain $1600, Italy May Also Need Bailout

Gold Market Prices Regain $1600, Italy May Also Need Bailout

Bullion prices on the wholesale Gold Market rallied back above $1600 per ounce shortly before Tuesday’s US trading, having failed to breach that level in the earlier Asian session, while European stock markets also ticked higher after a quiet morning’s trading. A day earlier, gold briefly rose above $1600 on Monday following the news that Spain will borrow up to €100 billion to rescue its banks, but along with stocks and the Euro gold failed to hold those gains. Silver Prices meantime jumped to $28.94 per ounce, a 1.5% gain on the week so far, while commodity prices reversed earlier losses. Earlier on Tuesday, Indian dealers reported flat trading, with one citing traditional […]

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US money supply data hints at trouble ahead

US money supply data hints at trouble ahead

Confirmation over the weekend that the Spanish government will receive €100 billion from eurozone rescue funds to help shore up Spain’s fragile banking system has lifted stocks and commodities this morning. Spain’s benchmark IBEX-35 index surged 4.5%, with strong gains seen on British, French and German exchanges. However, though the euro bounced early in trading it has started sinking again, though it remains above last week’s low of $1.241. Gold and silver have also been lifted following the Spanish news, with some traders looking to lighten up on their US dollar/Treasury positions. Gold broke back above $1,600 briefly during Asian trading – suitably so given the strength of sovereign demand […]

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Silver Price Forecast: Silver Could Preserve More Value Than Gold

Silver Price Forecast: Silver Could Preserve More Value Than Gold

The fundamentals for silver and gold are very strong, and with all the massive bailouts, which are increasing debt levels, they are just getting stronger. Until a significant portion of these debts is repaid or defaulted on, it would be foolish to talk about a top in precious metals. The repayment of debt (or default on debt – which is more likely) will result in significantly reduced economic activity. Significantly reduced economic activity will have a negative effect on the stock market, which in this case, will likely result in a huge crash. It is these conditions (a deflating debt bubble) that will drive gold and silver prices significantly higher. […]

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Gold Prices Just Tracking the Dollar while Spain Bailout Could Start Small and End Big

Gold Prices Just Tracking the Dollar while Spain Bailout Could Start Small and End Big

Gold Prices fell back below $1600 per ounce Monday morning in London, after briefly rallying above that level in Asian trading, as stocks and the Euro also began the week strongly and US Treasuries fell following news that Spain is to receive a bailout. Silver Prices also jumped as Asian markets opened, before they too traded lower, falling to around $28.70 per ounce ahead of the start of US trading. Euro Gold Prices by contrast rallied shortly before US open, climbing to €40,880 per kilo (€1271 per ounce) as the Euro gave back most of its early gains against the Dollar. “Gold seems to be primarily tracking one trend, namely the trend in the […]

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Gold Chart and Comments on 9 June 2012

Gold Chart and Comments on 9 June 2012

I have provided an 8 hour gold chart today as it provides a very good glimpse into the technical composition of that market’s recent price action. Note that you can clearly see the solid zone of buying support extending from just slightly above the $1550 level on down towards $1520. It has been at these levels that strong buying has continued to emerge over the last month. I suspect that it is in this zone that Asian Central Banks are gobbling up the metal. Remember, they will not chase the metal higher – only the hedge fund managers buy high and hope to buy even higher before selling. By keeping […]

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Is the Gold to Silver ratio ready to turn in favour of Silver

Is the Gold to Silver ratio ready to turn in favour of Silver

One of the key indicators in the precious metals, is the gold to silver ratio. As we’ve written before in the article “This is the century of silver“, the ratio is on average 20 to 1 on a historical basis. Going back to the Romans for example, gold coins had 16 times more value than silver coins. Also, the availability of (physical) silver 7 times the availability of (physcial) gold. Now looking at today’s gold to silver chart, the ratio holds a nominal value between 56 and 57. What does this figure say? First, in the context of the superbull market in gold and silver that started back in 2001, […]

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Gold and silver price characterized by volatility

Gold and silver price characterized by volatility

The least we can say is that the past couple of weeks are characterized by volatility in the gold price and silver price. Jim Sinclair predicted this price volatility a couple of months ago, when he wrote in an article on February 22nd: “The price of gold rose above the $1764 level which I have repeatedly told you is as important as $524.90 was when gold broke out of its arithmetic up trend and entered its first power up trend. I wish to remind you $1764 is the point where gold moves out of its power up trend and enters into its geometric uptrend. I have also assured you the central […]

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Gold And Crude Oil Charts: Does Any Clear Picture Emerge

Gold And Crude Oil Charts: Does Any Clear Picture Emerge

We have all seen the newspapers headlines about the troubles in Greece, Spain, Portugal, Ireland and the entire eurozone. The situation in the U.S. is not much better, even if the press is ignoring it for the moment. In both blocks there is high debt and large, long-term entitlement programs for citizens without any clear notion of where the money to fund these programs will come from. (Hint—the printing press.) The global economic situation is unstable and untenable. How long can citizens in the West continue to buy more and more imported manufactured goods from the East? When the West’s appetite for unessential consumer goods will lessen as people learn […]

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Gold Bullion Down after Curve Ball Bernanke Messes Up Traders

Gold Bullion Down after Curve Ball Bernanke Messes Up Traders

Gold Bullion prices fell to a low of $1561 per ounce during Friday’s Asian session – 4.8% down on the high for the week – while stocks and commodities also slid and major government bond prices gained. On the currency markets, the Euro fell back below $1.25 as the Dollar rallied, after Federal Reserve chairman Ben Bernanke yesterday “disappointed” traders by not making a firm commitment to a third round of quantitative easing, known as QE3. Gold Prices managed to recover some ground by Friday lunchtime in London, rising back above $1580 an ounce, but Gold Bullion was still down 2.5% on the week, having unwound most of last Friday’s […]

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Gold Reverses Higher on Friday 6 June

Gold Reverses Higher on Friday 6 June

Gold moved higher Friday as the Euro cut its losses and as sources learned that Spain will soon request assistance for its ailing banks. However, for the week Gold declined because investors currently don’t see monetary easing from the Federal Reserve or European Central Bank. This week the ECB did not cut rates nor implement any new crisis fighting measures. Furthermore, yesterday Fed Chairman Ben Bernanke said it was too soon for another round of easing. We will hear more after the Fed meeting on June 19-20. It should be noted that Gold gained along with the US Dollar. The negative correlation between the two is the weakest it has […]

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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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