Tag: gold charts

Self-similarity Saves the Day for Gold & Silver Investors

Self-similarity Saves the Day for Gold & Silver Investors

Last week, we devoted the beginning of our essay on the possible move up in gold to reassure our bullish outlook on precious metals despite the fact that prices were falling then. We wrote: It’s tough being a lone voice saying that gold prices will go up when they have tumbled and the financial press is writing obituaries for the gold bull market. It’s also encouraging being a lone voice saying that gold prices will go up precisely because it means that the general sentiment is very bearish and this is what we see at major bottoms. The precious metals are on the move up and right now it seems that the […]

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The Long-Term Fundamental Case for Gold

The Long-Term Fundamental Case for Gold

The Long-Term Fundamental Case for Gold “No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.” United States Constitution, Excerpt from Article 1, Section 10 A quick glance at most of the headlines over the weekend and the primary focus seemed to be either calling a near term top in domestic equity indices or a focus on the Greek debt situation. Why is […]

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Gold holding at initial support thus far

Gold holding at initial support thus far

Gold has dropped into the first zone of support noted on the price chart near the $1720 level and has thus far held as dip buyers surfaced. That buying was fostered by a weaker Dollar which was lower in today’s session but has not broken down decisively yet below the critical 79 level. Surging crude oil and gasoline prices did help gold today as some traders are concerned that the rise in energy costs will eventually feed through and impact the price of other goods and services  in the broader economy. Transportation costs can only be absorbed for so long. Author: Trader Dan 

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Gold Continuing to Fail at $1750

Gold Continuing to Fail at $1750

Gold has now spiked through the $1750 level several times since the end of last month but has not been able to CLOSE THROUGH this level. Until it does, the market will not be able to start a new leg higher in the uptrend. Generally speaking, markets tend to pause at resistance levels until they can gather enough of a spark to take them strongly through those or they retreat and consolidate leading to some basing action. During the latter, some of the shorter term oriented bulls will liquidate longs out of frustration or out of a desire to cash in some profits and bank them. That selling then paves the […]

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Why Energy Will Outperform Base Metals

Why Energy Will Outperform Base Metals

Energy is replacing base metals as the world’s most valuable commodity class… LET’S examine some evidence that energy resources are replacing metals as the world’s most valuable commodities, writes Dan Denning for the Daily Reckoning Australia. Item one is BHP Billiton’s half-year result. The company reported lower profits on higher revenues. Its half-year profit through December of 2011 was down 7% to $9.94 billion from $10.52 billion the period before. Don’t bother sending BHP CEO Marius Kloppers any flowers. $9.94 billion is a respectable result and still one of Australia’s great half-year corporate profits. But what’s interesting is that BHP is basically an iron ore and coal company trying to become an oil […]

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Gold Price – Choppy trading pattern continues

Gold Price – Choppy trading pattern continues

Gold currently seems unable to better the level near $1750 which is proving to be rather stubborn. There appears to be a bit of a headwind arising from lingering fears about Greece and a potential slowdown impact on the global economy as debt issues remain in the back of traders’ minds. That was trumped the other day by Chairman Bernanke’s promise of another 18 months or more of free money but in today’s session, apparently the effect has been somewhat muted. I am noticing that equities are lower today and the Dollar has managed a bit of a bounce with bonds moving up slightly off of their worst levels of the session and […]

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Gold Bulls unable to break through resistance

Gold Bulls unable to break through resistance

Today’s payrolls number, something which I might add is more akin to an Alice in Wonderland creation, was the factor responsible for the selling in both gold and in silver. The thinking was that if the economy is gathering steam at such a fast clip as the numbers suggest, then any notion of additional QE3 is a pipe dream. That means no Dollar debasement and little to fear on the inflation front so out came the sellers in the gold market. It also did not help the bullish cause that the market failed at a critical technical resistance level. Between the two developments, longs who have had a nice run […]

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The Gold Price Recovery

The Gold Price Recovery

We know gold is in a historic bull market because: A) Western governments have taken on huge debts and unfunded liabilities that cannot be paid back with sound, honest money (“real money,” gold, rises as a result). And B) the relatively poor countries of Asia are growing richer. They have a centuries-old cultural affinity for gold and silver. And they are buying huge amounts of gold. These “big drivers” have allowed gold to register 11 consecutive years of higher prices. Despite that historic run, there are many skeptics of gold and its bull market. Although these skeptics have been wrong for years, they gleefully claimed the gold bull market was […]

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Mining Stocks Yet to Go Up Decisively

Mining Stocks Yet to Go Up Decisively

According to Goldman Sachs, gold provided the best returns of all commodities in the past five years when adjusted for volatility and says the rally will continue as options traders signal no change in the metal’s relatively low risk. The Bloomberg Riskless Return Ranking shows the Standard & Poor’s GSCI Gold Total Return Index produced a 6.5 percent risk- adjusted return in the five years that ended last week, the highest among 24 commodities tracked by S&P, data compiled by Bloomberg show. Silver, the next-best performer, yielded a risk-adjusted gain of 3.1 percent, while a total-return index for all raw materials slipped 0.2 percent. Goldman Sachs forecasts gold will reach […]

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Monthly Gold Charts – January 2012

Monthly Gold Charts – January 2012

  Author: Trader Dan, specialized in commodities like gold & silver

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Gold knocking on the door of resistance at $1750

Gold knocking on the door of resistance at $1750

One thing in particular that really stands out to me in today’s trading session is the resilience of the gold market even as the safe haven trades were being put back on by a decent sized contingent of traders. The Euro got knocked down about 50 points and the US Dollar saw a pop higher as traders were expressing signs of nervousness over both Greece and now Portugal. Additionally, the long bond rallied up nearly a full point and is once again at the top end of a trading range that is now three months in duration. This combined with the fact that Euro Gold is extremely strong tells us […]

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What is Euro Gold telling us?

What is Euro Gold telling us?

Gold priced in terms of the Euro continues to be most impressive on the chart as it creeps ever closer to its all time high. This move upwards is a visual telegraph that there remains deep-seated concerns over the European sovereign debt situation, especially on the Continent itself, in spite of the recent euphoria over “free money” for the next two years. While the Fed has given the markets, and in particular, the wild-eyed hedge fund community, the green light to buy “risk assets”, there is an underlying current of palpable worry which remains in our global markets. Short-term oriented players are betting that they are faster than the next guy […]

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The Fed, the S&P 500 & Why Gold Is Shining Bright

The Fed, the S&P 500 & Why Gold Is Shining Bright

Well here we are, caught between resistance in the S&P 500 around the 1,330 area and support around the 1,300 price level. My last two articles have discussed why I was expecting a top in the coming days and weeks ahead, but prices just continued to work higher. One of the things that I pride myself in as a person who trades and writes about financial markets in public is that I am always honest. If I blow a call I fess up and admit it. When I have made mistakes in the past, I always try to learn something new from them and I discuss losing trades publicly with […]

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The Stock Market and the Dollar Sustain the Bullish Environment for Precious Metals

The Stock Market and the Dollar Sustain the Bullish Environment for Precious Metals

This week marked the Year of the Dragon in the Chinese calendar, and according to Chinese mythology, Dragon years bring powerful changes and optimism representing imperial power, prosperity and good luck. This year is supposed to be even more auspicious since it’s a Water Dragon year, something that occurs once every 60 years. We admit that we don’t yet use the Chinese Horoscope as a technical indicator, and who knows, perhaps we should. One thing is certain—the Year of the Dragon began with an auspicious move for precious metals. The dragon that breathed fire into precious metals prices was the Federal Reserve which announced this week that it is planning […]

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