RSSCategory: Articles: Gold Silver Prices

Will A Euro Breakup Boost Gold and Silver Prices?

Greek Politicians are struggling to form a new government.   Concerns are increasing that Greece will drop out of the Euro. Last week we spoke about the upcoming election in France where we saw a changing of the regime over the weekend.  France’s new socialist leader Hollande is much more supportive of the European Central Bank intervening to boost the european economy by taxing the rich and industry.  This is at odds with Angela Merkel who faces a possible ousting herself as it is clear that austerity is not popular. At one point there was a strong partnership between France and Germany but voters are choosing socialist means of taxing the […]

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Gold and Silver Hit 4-month Lows, but India and China Demand Could Give Key Support for Gold Price

UPDATE: Gold Prices fell to $1601 per ounce during Tuesday’s US trading, continuing the downward momentum established in the earlier London session and making a 2.5% drop from last week’s close. Silver Prices fell to hit $29.26 per ounce – 3.8% down on the week so far. Dollar Gold Prices at Tuesday aftertoon’s London Gold Fix were $1602.50 per ounce – the lowest PM London Fix price since January 5. EARLIER REPORT: Gold Prices fell to a two-week low of $1625 per ounce Tuesday morning in London – the first day of London trading since yesterday’s bank holiday – as stocks and commodities also fell and the Dollar extended recent gains, with markets still digesting the weekend’s French and Greek election […]

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Gold prices fall as traders run to the dollar

The fallout from the weekend’s European elections continues, with leftist politicians in Greece now attempting to form a new “anti-austerity” coalition government, with one radical-left leaders stating that “the people of Europe can no longer be reconciled with the bailouts of barbarism.” France’s new president Francois Hollande is still insisting that “austerity can no longer be the only option”, but Berlin remains unmoved. Spain also declared yesterday that it is preparing a bank bailout – a risky political venture considering that the Spanish unemployment rate is close to an eye-watering 25% of the workforce. It’s no exaggeration to say that such economic conditions, as in Greece, carry potentially revolutionary political implications. The […]

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Smart money is buying gold today, an excellent buy signal

What are the real buy signals you need to look for in a long term bull market ? We are not talking about some news items or articles in the mainstream media channels, neither some “investment advice” from banks. They all have their own interest as they to come out with their advice. Media have advertisers which they need to pamper in order to secure their revenues, banks maybe need to sell some funds or related financial products, etc. By contrast, we strongly believe that you need to watch what the real and independant experts are telling and what they are doing with their own money. So let’s have a […]

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How to Survive Financial Crisis, Spanish Edition

How to Survive Financial Crisis, Spanish Edition

Spain’s financial crisis might be hardening the politics of capitalists vs. workers and the unemployed, but it’s hardly benign for the first group, writes Adrian Ash at BullionVault. The IBEX 35 stock market index has fallen very nearly to the 6-year low hit in March 2009, and closed Friday at levels first seen in 1997. Worse still, according to the Bank of Spain’s latest Financial Stability Report… The value of mutual funds has halved since 2007; Private companies are choosing to hold bank deposits in other countries; The new Royal Decree Law – capping mortgage-interest rates for borrowers – has “in effect limited the interest rates offered by banks on their deposits”; Seeking higher rates […]

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The intermediate term trend in Gold has changed …

The intermediate term trend in Gold has changed …

… for the time being. In my opinion gold has now put behind it the bearish downward sloping “channel”.  Is this bullish because it is no longer bearish?  No.  What gold has developed is a solid “Symmetrical Triangle” which is neutral.  Symmetrical triangles can be continuation patterns or a reversal patterns.  I touched on the possible forming of trendline support in my prior post on gold here:  http://scottpluschau.blogspot.com/2012/05/follow-up-on-gold.html What is a symmetrical triangle?  A pattern that shows a tightening in the battle between the Bulls and the Bears.  This pattern can clearly be seen on the daily chart below where I have drawn grey trendlines.  The downward upper sloping trendline in the triangle shows increasing supply with each […]

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ECB rate decision pressures gold

The European Central Bank’s decision yesterday to leave interest rates unchanged at 1% pushed more traders out of commodities, with precious metals coming under more selling pressure following the news. Gold is now floating around $1,630 while silver has fallen just below $30 – an area however where we should see strong bids coming in for the white metal. Likewise, gold should encounter strong buying support below $1,650, though a lot depends on the latest US nonfarm payrolls report due out today. A disappointing number will encourage speculation that Helicopter Ben and the Federal Reserve will engage in more quantitative easing; but a stronger number will dampen such expectations, and could pile […]

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Gold Chart and Comments – May 4th

Gold Chart and Comments – May 4th

Today’s payrolls number was just as rotten, if not more so, than most traders and analysts had been expecting. The numbers coming out of the private firms were indicating this and they were very accurate. The problem is that the jobs number was even worse than nearly anyone had anticipated so we did get a very strong reaction in the equity markets with bulls running to the hills sending up smoke signals (this one is for that famous native American running for the Senate in Mass.)  for Mr. Bernanke and company to come and save them. Alas, Mr. Bernanke must have been over sipping some latte at Starbucks as he was no where to be […]

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Gold premium over platinum increases

In recent weeks the platinum price has been clearly underperforming in relation to gold, with gold now more than $100 more expensive than platinum. According to the latest report from the German precious metals trading group Heraeus, in recent weeks platinum long positions at futures markets have dropped more than 30%. In early trading today platinum dropped below important support at $1,540 per troy ounce – a sign that the current sell-off might not be finished. Despite this bearish data, India’s Bullion Market Association expects platinum imports into India to increase by as much as 50% – or 20 to 22 tonnes. This rapid increase in platinum imports could be due to […]

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Follow up on Gold Price

Follow up on Gold Price

Gold got to peek above the trendline in the downward sloping channel and looked poised for a solid breakout with a few days of solid momentum behind it.  Then the rumor was a “fat finger” trade came in, conveniently smashing the gold price safely back down inside the bearish channel.  Pure coincidence?  I don’t know, but as I always say I don’t care about manipulators, I only care about objectively analyzing the auction.  Once gold came back down inside the channel it’s time to step aside for me and wait for something new to develop using my methodology.  I’m in no hurry.  Good opportunities to trade will come again as always. From an auction […]

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Takedown in Gold Price today Rejected

Takedown in Gold Price today Rejected

Take a look at the following 5 minute chart and note especially the volume readings posted below each individual price bar. Look just past the 5:00 AM Pacific time hour and you will see the enormous volume spike accompanying the sharp downdraft that occured in the gold price dropping it $15 in the course of minutes. Analysts are still grasping for an explanation. The most common is that it was another one of those “fat fingered trades”. Have you ever noticed how many fat fingered human beings apparently camp out in the trading community. Last time I checked a skinny finger could hit an “enter” key just as easily as […]

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Missouri politicians aim to simplify use of gold as money

Missouri is the latest US state that is trying to follow Utah’s example by allowing physical gold and silver to be used as legal tender. According to the Constitution, gold and silver coins – such as the American Gold and Silver Eagle – should be accepted as legal tender in all of the US, but of course this has long since ceased to apply in practice. But now some members of the Missouri House of Representatives are working on simplifying the payment process with precious metals, and are hoping to introduce special gold and silver accounts for all monetary transactions done in the state. This plan is similar to a law passed […]

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No Support from Physical Gold Bullion Market while Spain Banks Downgraded

Gold Bullion prices held above $1660 per ounce Monday morning in London – holding on to last week’s 1.1% gain – while stocks fell, commodities were broadly flat and US and German government bonds gained as Spain continued to generate headlines. “On the physical front [however] things were looking not as one might have hoped for [last week]”, says a note from Swiss bullion refiner MKS. “There’s no support from the physical market,” one Hong Kong dealer told newswire Reuters this morning.  Prices for Silver Bullion fell this morning to $31.10 per ounce – 0.6% down on Friday’s close. Gold Bullion prices in Euros meantime hit their highest level in almost two weeks this morning, touching […]

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Gold is on the verge of a change in trend

Gold is on the verge of a change in trend

Gold climbed a set of stairs for most of today’s Comex trading session on the 5 minute chart, and is at the upper trendline resistance of a perfectly parallel downward sloping channel on the daily chart.  If gold breaks out on a surge in volume I will be extremely focused on trading gold to the long side until there is a reversal or my near term price target of $1,722 is reached. A breakout of the channel could lead to sideways action, or range bound trading (Horizontal Development), but in my opinion the break will be something the Bulls need in order to consider trading gold again to the long side with any conviction.  I certainly won’t be looking to trade […]

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