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Gold is close to reversing, still short
Gold had a nice continuation rally on Monday and is very close to reversing to the long side. However, we remain short, cautiously. It feels like we will be reversing soon, the pattern looks good, and there appear to be some buyers ready to step in. We will not be adding to shorts, we will observe the action around these levels.
Gold looks the strongest among the precious metals, with Platinum looking better while Silver is still weak. We must remember that markets can change in a heartbeat, weak can become strong, and strong can become weak. Therefore, we follow the algorithm, emotionless trading as we await the next trend.
When we separate trading and investing, we must do so with a plan. We are trend traders looking for extended moves in either direction. We don't care which way we make money from a trading position, and nothing changes our investing. Read More
Silver Technical Analysis: Not broken out just yet
Silver has moved 1% lower in the European session after a nice run since February 3rd. The price has not broken out of its current distribution area but if it manages to break higher in the afternoon there is a resistance at $23.25/oz (red zone). Beyond that, there is another zone in the green area. This was the consolidation low of the higher distribution. Between August 2020 to now the price has been in a strong consolidation pattern and at the moment the price is at the lower end. Any push higher from here would be met with lots of traffic with $24.11/oz being the most significant price level.
If the bulls fail to break out past the 0.382% then the lower support levels could be back in focus once again. The first point of call would be the previous wave high near the 23.6% Fibonacci retracement ($22.65/oz). The price has bounced off the zone a few times and this could mean it might be significant once again. Below this, the main support on the chart is the low at $21.98/oz. Any break of this area could spell trouble for the bulls as the next low on the higher timeframes is the main consolidation low at $21. 41/oz. Read More
Image Source: Kitco News
Gold, silver rally as traders buy the early dip
Gold and silver futures prices are modestly up in midday U.S. trading Tuesday. Overnight losses were deemed by the precious metals bulls to be a bargain buying opportunity. Otherwise, some routine backing and filling on the charts has been featured as fresh fundamental inputs are awaited. April gold futures were last up $6.70 at $1,828.50 and March Comex silver was last up $0.154 at $23.23 an ounce
Image Source: Kitco News
Technically, April gold futures prices hit a two-week high today. Bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at the January high of $1,856.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the January low of $1,780.60. First resistance is seen at $1,835.40 and then at $1,850.00. First support is seen at today’s low of $1,816.00 and then at this week’s low of $1,807.50. Wyckoff's Market Rating: 6.5. Read More
Gold rises despite expectations of aggressive Fed and rising Treasury yields
Gold has had respectable gains since January 31 in light of strong headwinds from rising yields in U.S. Treasuries and the Federal Reserve’s anticipated tightening of their monetary policy. As of 4:40 PM EST gold futures basis, the most active April contract is up $5.10, or 0.28%, and fixed at $1826.90. Since the beginning of last week, gold has risen from a low of $1786 to its current price gaining approximately $41.00. Gold’s value has increased by 2.29% in the last seven trading sessions. This in light of a tightening of the Federal Reserve’s monetary policy and rising Treasury yields
Image Source: Kitco News
The Federal Reserve has been reducing its asset purchases from $120 billion monthly and expects to complete the process of tapering their purchases to zero by mid-March. They have also disclosed that they plan to reduce their asset balance. According to Statista, the outstanding assets on the Federal Reserve’s balance sheets are $8.87 trillion. Read More
From one of the worst to best-performing assets? Gold price to tackle $2,100 by year-end, says Wells Fargo
Gold can go from one of the worst perming assets last year to one of the best in 2022 as some of its main obstacles dissipate, according to Wells Fargo.
After finishing the year down 3.6%, the worst drop since 2015, gold is looking for a breakout rally towards new record highs, Wells Fargo said in its updated gold price outlook.
Some of the top headwinds to gold prices last year were massive risk-on sentiment in the U.S. stock market, higher U.S. dollar, and the idea that elevated inflation was transitory, Wells Fargo investment strategy analyst Austin Pickle pointed out.
“There were some sizable 2021 gold headwinds in play, with the more significant including a blistering risk-on rally with little volatility, a strengthening U.S. dollar, and real interest rates that found their bottom,” Pickle said. “One could also throw onto the pile inflation that was assumed to be transitory for much of the year, surging cryptocurrency prices, and increasingly optimistic investors and economic outlooks.” Read More
'Black Swan' catastrophes are unlikely, but here's how to prepare for the worst - Jay Martin
With inflation skyrocketing, many investors have been ‘de-risking’ their portfolios by investing in safe-havens. “I have de-risked my portfolio dramatically. I purchased some real estate, increased my gold, Bitcoin, and cash holdings,” disclosed Jay Martin, CEO of Cambridge House. “Without a pocket full of cash, you lack the confidence to chase those higher-risk opportunities when they present themselves.”
Martin discussed his outlook on investments with David Lin, Anchor at Kitco News. Read More
Gold and silver trade just above flat leading into the European open
Gold and silver are both trading just above flat leading into the European open. In the rest of the commodities complex, copper (-0.90%) and spot WTI (-0.61%) struggled overnight.
Risk sentiment in the Asia Pac area was firm after a positive close on Wall Street. The Nikkei 225 (1.08%), ASX (1.14%), and Shanghai Composite (0.79%) all closed higher. Futures markets in Europe are indicating a positive cash open.
FX markets were very quiet overnight. The biggest mover was GBP/USD which rose only 0.08%. In the crypto space, BTC/USD is trading 1% lower at $43,584 following three straight sessions of positive price action. Read More
India's central bank goes on a gold buying spree
The Reserve Bank of India (RBI) has been on a global gold buying spree. The RBI bought up 77.5 metric tonnes of gold in 2021, its second-highest ever after 2009 when it bought 200 metric tonnes from the International Monetary Fund (IMF).
It was confirmed the Reserve Bank of India (RBI) emerged as the second-largest buyer of yellow metal among the world's Central Banks in 2021. The largest buyer, the Central Bank of Thailand, bought 90 metric tonnes of gold while RBI bought 77.5 metric tonnes taking its total gold reserve to 754.1 tonnes at the end of December 2021. India’s official gold reserves are ninth-largest in the world, says Goldhub, the official website of the World Gold Council (WGC) that maintains all the data regarding precious metals. Read More
Live from the Vault: Episode 60
Have We Reached the Critical Mass point? feat. Craig Hemke
In this week’s Live from the Vault, Andrew Maguire is joined once again by Craig Hemke, founder of the TFMetalsReport, a well-respected gold and silver blog, renowned for boldly exposing market manipulation.
The two old friends discuss an industry-shifting divergence between the Fed and BIS policy, with massive bullish potential for gold - and weigh in on the prospect of the fractional reserve banking system finally getting revealed.
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
