RSSCategory: Articles: Gold Silver Prices

Gold Price Tied to Risk Assets as Fund Managers Run into Cash

The wholesale Gold Price bounced from a 4-session low at $1552 per ounce Wednesday morning in London, rallying with the Euro currency as world stock markets slumped. The Athens stock market hit a fresh 22-year low, and Wall Street futures pointed 0.7% down, while US Treasuries rose sharply together with Japanese, German and UK bonds. The Brazilian Real continued to weaken, hitting new 3-year lows on the forex market despite the Banco Central do Brasil selling some $2.8 billion in US Dollars via currency swaps over the last 3 trading days in a bid to stem the slide. As recently as March, Brazil’s government accused the United States of under-pricing the Dollar, […]

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So What’s Up with the Gold Price?

What’s up with the Gold Price? asks Adrian Ash at BullionVault. Very little besides Facebook. Gold is down, in fact. So is everything else bar the US Dollar and “safe” sovereign debt. “I think what we can expect is a rate cut from the ECB [European Central Bank],” said Joachim Fels, chief economist at Morgan Stanley, to Bloomberg TV Wednesday morning. “I think they will cut soon, as early as the June meeting… “But unfortunately, a rate-cut alone doesn’t do the trick.” The trick, of course, is holding the Eurozone together by destroying the Euro. Or at least decimating its value. You might expect that to boost the Gold Price, and everything else. But very little […]

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Gold signals trouble ahead

Gold signals trouble ahead

Precious metals are still struggling to gain ground in the face of persistent fears about the eurozone and the threat of a 2008-style market meltdown. The CFTC’s latest Commitments of Traders Reports for the gold and silver futures market in America shows managed money (read: hedge funds, commodity trading advisors, etc) holding their largest short positions in these markets since September 2008. Is The Great Crash coming? The GotGoldReport comments, however, that if recent history is any guide these large short positions are more often that not an indicator that we are getting close to a bottom, as the chart below suggests: Gold remains trapped in a range between $1,550 and $1,600, after failing […]

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Physical Market Continues to Buy Gold as Consumers Adjust to $1600

Prices to Buy Gold fell further from yesterday’s attempt to break $1600 per ounce in London on Tuesday morning, bouncing higher from $1575 as European stock markets rose for the second day running after falling all month. The price to Buy Gold with British Pounds reversed an early dip below £1000 per ounce – a level first reached as the Eurozone and US debt crises intensified in July 2011. Credit ratings agency Fitch today cut Japan’s status to “A+” with a negative outlook. Commodity prices were mixed, with US crude oil almost 7% down from the start of the year as the Paris-based OECD consultancy cut its forecasts for Asian GDP and global energy […]

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Gold rally bumps into resistance

Last week was a week of two halves as far as precious metals were concerned. The first half a dire one for bulls, but the second seeing new buyers tempted into the market, with Thursday’s impressive gold rally setting the stage for a recovery back above $1,600. Silver is still trading around $28.50, with $30 a key short-term target for silver bulls. Growth assets such as stocks and industrial commodities have risen slightly in trading this morning, with Brent crude finding its way back above $107.50 a barrel, while copper has rallied (0.76%) since midnight GMT. In contrast to usual risk-on trading patterns, however, the euro has fallen slightly against […]

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Spot Gold Faces Significant Upside from Euro Debt & US Fiscal Crisis

Spot Gold prices touched a 7-session high just shy of $1600 per ounce in London’s wholesale market early Monday, falling back to last week’s finish at $1593 as European stock markets rose for the first time in 10 days. Spanish and Portuguese bond prices fell again, but the Euro held tight around $1.2750 after the weekend’s G8 summit of developed-world leaders vowed to “take all necessary steps to strengthen and reinvigorate our economies and combat financial stresses.” German and US government bonds ticked lower, nudging interest rates higher. Silver Prices slipped 1% to $28.50 after erasing last week’s 7% plunge to finish unchanged. Spot Gold for immediate physical settlement this morning traded 4.3% […]

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Gold Price and Silver Price: the week till 18/05 in review

The gold price saw a decline of more than 3% during the first half of  the week. It touched the lowest point since beginning of this year during Wednesday’s trading session, being 1.527 US dollar. The gold price bounced back during the last two days of the week to close on 1.587 US dollar and 1.241 euros on Friday evening. That’s a gain of half a percent week-on-week. The silver price followed a similar pattern. Silver closed the week on 28.65 US dollar per ounce and 22.48 euros, which is very similar to the close of one week earlier. On Thursday and Friday, the downtrend in the gold price and silver price seemed to reverse. […]

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Silver price Forecast: Dramatic Turnaround For Silver?

Silver price Forecast: Dramatic Turnaround For Silver?

Here are a few patterns that might explain the current state of the silver price, as well as, provide the possible way forward. Below is a 6-year chart of silver (all charts generated at fxstreet.com): On the chart, I have indicated two similar patterns (marked 1 to 5).This comparison suggests that silver could rise significantly over the next couple of months. This would mean that a dramatic turnaround in the price of silver is coming (it might have started already). I have also drawn some red lines at the $10, $20, $30, and $50 level. These levels appear to have acted like key levels, where the price of silver has […]

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Philly Fed survey boosts gold

The gold price has bounced back in some fashion over the last 24 hours, hurtling back above $1,550 and now probing the $1,600 mark. Silver is also on a tear and is back trading around $28.50. One swallow doesn’t make a summer, however, and given the continuing eurozone tensions – which now include confirmation that the European Union is working on an emergency plan to handle a Greek exit from the euro – these gains could be lost on a short-term basis if we see another bout of US dollar buying. Precious metals were helped higher by news from the Federal Reserve Bank of Philadelphia, confirming that US business activity is slowing […]

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Gold continues its bounce on 18 May 2012

Gold continues its bounce on 18 May 2012

Gold continues to bounce higher in today’s session as it moves further away from the bottom of the BROAD 8 MONTH TRADING RANGE shown on the chart below. The metal actually seems to be reverting to its safe haven function as it is holding its gain in spite of continued weakness in the broader US equity markets. It does seem to have hit a band of resistance, as might be expected, near the psychological round number of $1600. For gold to get a handle of “16” in front of the price, we are going to need to see more hedge funds willing to go long this market even as their […]

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Target 2 reached in Silver

Target 2 reached in Silver

The second target for the bearish “Head and Shoulders” pattern on silver was reached for greater than $25,000 per contract.  The target was using “Measured Rule”, which takes the distance from the top of the head to the neckline, and adding it onto the breakdown point. My previous post on silver and the first target of the “Descending Triangle” being reached for $11,000 per contract can be found here. Once again a trailing stop loss put in any place other than what would have invalidated the trade idea or confirmed a reversal, (such as a fear of losing profits) would have been brutal had it been stopped out prior to the target being […]

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Gold Bouncing from Support in Asian Trade

Gold Bouncing from Support in Asian Trade

After what seems like a nearly vertical fall in the gold price over the last 7 or 8 days, gold is finally getting a bit of a reprieve this evening as it enters Asian trade. The interesting thing about this most recent selloff is that reports of physical offtake have indicated good buying of the metal down here at these levels. This has been swamped by hedge fund liquidation and some fresh short selling as some in this category are moving onto the short side. As you can see on the chart, gold fell nearly right to the very bottom of this 8 month long trading range before bouncing higher. It […]

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Gold: Like Summer 2011 Never Happened

Gold: Like Summer 2011 Never Happened

Wearing its greatest debt burden since WWII, the UK government can now borrow for 10 years at less than 1.9% per annum. The US Treasury is paying 2.9% per annum on 30-year debt. Does anyone really expect a yield of less than 3% to beat inflation between here and 2042…? Yet the price of gold – the anti-debt – keeps falling, and it keeps falling despite the imminent failure of Greece’s Euro membership and the looming collapse of Europe’s banking system. Some €700m per day is being pulled from Greek banks. Global stock markets have fallen over 7% already this month, the broad commodity markets have fallen for 10 out […]

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George Soros Opts to Buy Gold But Asian Selling Continues

Spot wholesales prices to Buy Gold bounced $10 per ounce from a new 5-month low at $1527 in London trade Wednesday morning, rallying as the Euro, stock markets and commodity prices also retraced their fresh losses. Spanish and Italian bond yields both eased back but held above 6% as Spain’s prime minister Mariano Rajoy warned the Madrid parliament of “a serious risk that [the markets] don’t lend to us or that they lend to us only at astronomical prices.” President Karolos Papoulias of Greece – now losing €700m per day in bank deposits according to senior figures – today appointed a judge to act as interim prime minister ahead of re-run elections […]

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