RSSCategory: Articles: Gold Silver Prices

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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Gold Price Drop Triggers Stop-Losses

The Gold Price fell further against the US Dollar in Asia and London on Wednesday, trading at 1-week lows beneath $1550 per ounce as world stock markets dropped and the Euro hit a new two-year low as fresh debt worries hit the 17-nation currency union. Spain was accused by the European Commission in Brussels of not doing enough to meet its deficit-reduction targets under the new EU treaty – agreed by politicians in December and due for Ireland’s ratification after next Sunday’s vote. Spanish bond yields rose again as bond prices fell, with the price of credit default swaps on Spanish government debt – a form of insurance that failed to pay […]

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Gold Continues to Attract Buying at the Bottom of its Trading Range

Gold Continues to Attract Buying at the Bottom of its Trading Range

Gold has once again attracted strong buying down near the bottom of its broad 8 month trading range and has now bounced higher for the day. Strength in the yellow metal has pulled silver up a tad which was sinking under the weight of a collapsing copper market. While some are ready to pronounce gold DEAD as a safe haven asset, the chart picture denotes otherwise, especially given the broad weakness in the commodity sector as a whole and the rallying Dollar, which continues its technical march towards the 84 level on the USDX. Whenever I see gold moving higher alongside Treasuries and the Dollar, it tells me that all […]

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The USD Index above 82.5 Is Deadly for Gold

The USD Index above 82.5 Is Deadly for Gold

The reasons for the gold’s decline given in the press were a case of “round up the usual suspects.” There were concerns that China’s economyis slowing and that European leaders may fail to stem the debt crisis. As expected, the new French President Francois Hollande challenged Germany’s deficit-cutting stance. The euro hit a near two-year low against the dollar on Thursday after dismal German economic data suggested that no country in Europe is immune from crisis. The German data for May suggested the growth in Europe’s economic engine that has so far helped the currency bloc dodge recession, may be starting to slow. Last week euro dropped sharply to $1.2515, […]

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Gold Investment Needs New Driver, Currently Under-Valued

The price of wholesale Gold Investment bars gave back a $5 rally in London for the second day running on Tuesday, ticking lower to last week’s finish at $1573 per ounce as the Euro currency also reversed its early gains. European stock markets cut their rise but held 0.7% better by lunchtime, while commodity prices were broadly higher but the Silver Price fell to new 3-session lows beneath $28.30 per ounce. US, UK, German and French government bonds rose yet again, pushing the annual yield on 10-year Bunds down to 1.35%. Germany’s consumer price inflation was today pegged at 1.9% year-on-year by the official statistics agency, down from 2.1% in April. Spanish retail sales fell […]

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Gold Price Higher But Seen Rangebound

The Gold Price rose 0.8% in Asian and early London trade Monday, touching $1584 per ounce and holding above 4-session highs as the Euro rallied together with global stock markets. With New York closed for Memorial Day, commodity prices also extended their bounce, and the Silver Price added 30¢ before edging back to last week’s finish at $28.54 per ounce. Spanish 10-year bond yields today rose back above 6.4% –  a level last seen before the European Central Bank’s €1 trillion LTRO loans began in December 2011 – as press reports said Madrid may move to support both the failed Bankia lender and Spain’s cash-strapped regional governments with new public debt. Italy’s unelected caretaker […]

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Central Banks and China provide solid support for the gold price

Past week marked another V-type move in the gold price and silver price. The good news though is that the previous low has not been broken, but we rather saw a higher low. Especially in gold, a remarkable  bounce occured intraday on Wednesday, after the trading session started with a sharp price drop. It seems that the gold price is not allowed to move lower, at least for now. We’ll need to watch the price action over the coming weeks. Tensions over Europe are increasing and the faith of the European currency and banking system is in the hands of the politicians. The speed and type of their decisions will […]

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Gold Price hits same bottom 4th time: the week till 25/05 in review

The weekly review by BullionVault.com, shows that gold and silver followed a similar pattern as one week ago: a drop in the first days of the week followed by a bounce towards the end of the week. In particular, the gold price dropped on Wednesday to 1534 US dollar per ounce, but then rallied back very fast to close the week at 1569 on Friday at the London PM fix. That’s a weekly close with a loss of some 20 dollar. Silver followed a comparable price action, but it recovered better than gold on a weekly basis. Silver closed the week on 28.24, down 0.9% week-on-week. Of course, the main theme during the past week […]

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