Latest Gold & Silver Price News
Regardless of how the dollar fares versus the euro or other currencies in the near term, the dollar stands to resume the long-term trend identified by Warren Buffett. The dollar, over time, is destined to depreciate against real assets, including gold and silver.
The support level in COMEX Gold is actually a zone as opposed to a cleanly defined line. Notice how price ran into resistance between $1055 and $1110 back in 2008 / 2009 and then turned that level into support in late-2009 / early-2010. Now, in 2015, Gold has pulled back almost to the support zone with a low so far of $1132. Some analysts are calling for a low of $1030 before the current cyclical bear trend is completely finished. While none of us want to see a price of $1030 on the yellow metal, notice that $1030 would just be a test of the long-term support zone.
The latest Commitment of Traders Report for futures positions held at the close of trading on Tuesday March 17th 2015 is very encouraging. We can easily conclude, based on the data, that the current setup in futures positions point to a meaningful rally, at least in the short run, in both gold and silver. In other words, the selling in the ongoing cycle seems to be behind us, and a new short to mid term cycle should have started last week. To back up our thesis, we are looking at the rate of change of commercials short positions in the COT report. We have used this time and again, so far each time with success.
For the week commencing March 23d, some economic data are scheduled to be announced but there is no central bank decision planned, as seen in the table below. Mr. Draghi and Mr. Yellen will have each one a speech during the week, but they are not announcing a decision from the central bank. CPI in the U.S. and new home sales are scheduled on Tuesday; unless the CPI will be very surprising, these are not the type of economic data that are moving precious metals prices. However, the U.S. GDP data on Friday have the potential to create some volatility in markets and metals.
The entire Western banking system is corrupt and bankrupt, held together by issuing more and more fiat, but only into the totally insolvent banking system. For as long as people are willing to buy into the lies spewed by the criminal enterprises, more commonly known as governments, the “emperor-is-wearing-no-clothes” mentality will keep the elite’s sinking fiat ship alive. There is obviously no known solution for world-wide stupidity.
In his weekly market review, Frank Holmes of the USFunds.com summarizes this week’s strengths, weaknesses, opportunities and threats in the gold market for gold investors. Gold closed the week at $1,183.16 up $24.61 per ounce (2.12%). Gold stocks, as measured by the NYSE Arca Gold Miners Index, rose 0.45%. The U.S. Trade-Weighted Dollar Index lost 2.40% for the week.
For once in a rare change, gold futures have actually held onto a gain achieved the previous day. Although they made no upside headway on Thursday, it was something of an achievement for them to have merely stayed aloft. The bullish abc pattern shown has a clear-as-can-be rally target at 1186.70 that has been confirmed by the stall precisely at 1172.70, the ‘p’ midpoint pivot. As always, an easy move through p would imply more upside to D, at least. If bulls are revved up and ready to blast off, they should be able to surpass 1186.70 today without much trouble.
Note the massive correction in prices, and the deeply oversold condition of the Relative Strength Indicator and the TDI. Prices have been ready to turn up for several months. Prices may not rally this week but they will soon. Stacking silver is good insurance. What could go wrong with our political and financial systems that might assist silver prices? Economic wars and hot military wars increase debt and commodity prices. Gold and silver will see another rally, probably one that surprises almost everyone.
If we do see gold break out of its bearish channel next week, the yellow metal may target the Fibonacci retracements of the 2-month drop at 1205 (38.2% or even 1245 (61.8%) moving into Q2, especially if the greenback sees a more meaningful correction. On the other hand, a reversal off the top of the channel may take prices down to test the five-year low at 1130. Time will tell if gold can continue to buck the trend in the buck.
NUGT, the 3x ETF, is hovering at or below support with a very clear volume signature. The reason I think this might be a chart to pay attention to is where there is this much smoke, there is usually fire. With 200 Million shares on the week, its important to remember one primary cornerstone of Technical Analysis is volume precedes price. A chart that glitters might be worth some attention even if you choose to use another ticker symbol for your trade.
Last week, global markets were dominated by the currency market as the U.S. dollar continued its unrelenting upward momentum impacting on dollar commodities including gold which ended the week at $1158.60 an ounce. Currently, the low interest rate environment has forced individuals to speculate and invest in equities in an attempt to generate some return for their investment. After all who in their right mind is going to pay a bank to keep their money? And, as the hard working individual continues to be penalised, global major banks are getting away with a list of crimes.
The argument that one cannot eat, wear, or build with gold is often used as an attempt to show that gold has no value in-and-of itself. The anti-gold crowd often claims that if it were not for gold’s monetary use, which it has not had since 1971, at least not formally, gold would be useless with little or no value. What is left unmentioned is its growing use in a growing electronic device market. If gold has no value beyond its monetary use, why did it not become cheaper than gravel when its monetary use ended? This argument against gold is stupid and is intended to deceive.