Gold & Silver Price Charts At The Close Of November 2012

The end of the month means chart review time. We’ve collected several charts with closing prices at the end of November 2012 and added a short commentary with each chart.

Both gold and silver have been trading sideways in November. Gold has closed slightly below the 20 day moving average ($1722.97), lower than the 50 day moving average ($1738.92) and significantly higher than the 200 day moving average ($1665.75). Trading volume was average in November. We are nowhere close to momentum, in neither direction. Conditions are not overbought neither oversold.

The picture is comparable in silver. Silver has closed higher (not lower) then the 20 day moving average ($32.83), slightly higher than the 50 day moving average ($33.16) and significantly higher than the 200 day moving average ($30.98).

An interesting view in gold at the end of November, is the inflation adjusted gold price (monthly close). With inflation taken into account, the gold price is only now hitting its historic highs. What a difference in the bottom line when looking at the nominal value of gold in dollars vs the inflation adjusted gold price in dollars. Please note that Goldchartsrus publishes a similar chart but with the CPI as the inflation measure. Based on the CPI, the nominal value of gold’s top in 1980 is $2704.15. Chart courtesy: Dan Norcini.

For our European and Japanese readers, we’ve included the gold price in all major currencies. The chart shows how euro gold, swiss franc gold and yen gold closed November at their highest nominal value (or almost at the peak).

The gold to silver price ratio closed November at 51.10. That’s at the average to lower part of the mid term range and has turned slightly in silver’s favor compared to early November. We are far, far away from the historic very long term average of around 16 of course. In his latest commentary, Ted Butler notes the following: “Conditions in the wholesale physical silver market continue to appear as tight as a drum. I am overly sensitive to signals that the physical silver market has grown tight because I am convinced that a physical silver shortage must and will terminate the ongoing silver price manipulation.” Read more about his work by subscribing at ButlerResearch.com (highly recommended).

Last but not least, since early August the miners have led the metals higher. In October, we saw the trend line flattening out and in November the trend has been reversed. David Morgan commented on the gold miners with his view on the short and medium term evolution. Get access to his commentaries by subscribing to his premium newsletter,

 

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