Gold Bugs Return from Exile
The long suffering (and diminishing) army of gold bugs, distraught over gold’s underperformance in the wake of asset inflation, government spending, and historically low (sometimes negative) interest rates over the last seven years, received a resounding message of hope yesterday when gold broke through long term resistance to top tick at 1397.70. Silver also broke through near term resistance of $15.15, and this morning gold miners also jumped higher and confirmed the breakout and retest of the long term down trend line from the 2011 highs. It all seems to be working at the moment for the precious metals sector. Let’s look at the charts. (more…)
Gold hits $1362 in Overnight Trading
The long term daily chart above highlights two potential falling (slightly) resistance lines from the peaks of the last six years. These lines are represented in black and red. Of particular note is how gold has reacted to these lines in the last few weeks – honoring both to the tick. This trading action is more evident on the 4 hr chart (below). (more…)
Testing Resistance
The palladium price broke up from its first test of resistance (blue trend line) and is now in the process of testing its second resistance line (red trend line). This action comes on the heels of a successful test of the 61.8% Fibonacci retracement from the August lows to the March peak, as shown in the chart below. (more…)
Gold looks bullish; Platinum, not so much
Here is a quick snapshot of the metals sector. The silver chart above is constructive, as silver broke out of a falling wedge and confirmed the bullish action in gold. It also successfully hit its initial target of $15.15-$15.20. The support levels to watch now are $14.30-$14.50, where silver may retest falling wedge support (formerly resistance) and the trend line from the August lows. A break above $15.20 should target a move to $16.20. (more…)
Gold retested $1350 in overnight trading, extending this current move more than $84 in the last couple of months. The chart above is admittedly busier than I generally like, but so much is happening technically with the gold price.
Gold successfully retested falling support from the 2011 peak (red line) at $1180 in late-2018. This coincided with a successful retest of rising support from the 2015 low. Gold is now meeting resistance from prior peaks between 1350-1370 during every attempt over the last 6 years to break out. (more…)
The precious metals sector has continued the momentum it closed with in May. Gold and silver, in particular have been surging this first trading day in June. Let’s take a look at the technicals.
Gold has moved from a bottom at 1167 last July to a peak at 1350 in February. Beginning in February, volatility began narrowing and gold has been mired in a falling wedge pattern. According to Bulkowski (2010), 92% of falling wedge patterns break to the upside, and of those that break, 90% reach the upside target which is measured as the distance from the breakout move to peak, added to the recent breakout. I see the original break as $1238, so in this case, that would set an upside objective at $1400-$1420. (more…)
During this past week ending May 31st, 2019, oil sold off sharply, closing the week down almost $6 to $53.37, while gold rallied to close the week at $1305.50. I like to monitor the price of oil in gold terms, and to do that I use 100 barrels of oil as the numerator and the price of one ounce of gold as the denominator.
This ratio has been in a downtrend channel for a decade, with a countertrend move beginning in 2016 and failing recently during the oil sell-off last fall, which led to the breakdown of the blue channel. Oil has since tried to retest that support line through the first part of this year, but failed the retest last week. This failure is bearish, meaning that it indicates a lower ratio going forward, which should be strong for gold and weak for oil.
Following weeks of low volatility, where the CBOE Gold Volatility Index fell to a decade low of 8.75, gold rallied $15 per ounce today to close at $1284. Simultaneously, the US dollar broke above heavy resistance (briefly) at 98. As the dollar goes, so go the metals.
Gold has been forming a long, rounded bottom since 2013, and the chart looks constructive. The bull case for gold technically is that the price has remained above the 200 day moving average for the entirety of 2019, and the 200 DMA is now turning up. Gold also pushed into overbought territory on the Relative Strength Index (RSI) earlier this year, and as not oversold, which indicates that gold still has positive momentum. (more…)
Texas Precious Metals Depository announces the addition of New Direction IRA – a provider of self-directed IRAs, 401(k)s, health savings accounts (HSAs), and other such tax-advantaged savings vehicles – as a preferred custodian for self-directed IRA services at its new storage facility. In conjunction with New Direction, Texas Precious Metals Depository (TPMD) will complement the retail services provided by Texas Precious Metals to meet the needs of precious metals IRA investors. (more…)
Written by Olivier Garret June 21, 2018
The World Gold Council recently released an insightful report titled, Gold 2048: The Next 30 Years for Gold. This report looks at overarching demographic, technological, economic, political, and social trends around the world and their implications for the gold market. (more…)
Introducing The Texas Precious Metals Depository.
Texas Precious Metals Depository is a state-of-the-art underground private storage facility for gold, silver, platinum and palladium (more…)
Written by Adem Tumerkan @ Palisade-Research.com April 26, 2018
Emerging markets are starting to get restless with the U.S. about gold and the dollar’s hegemony. (more…)
