THE MAJOR TURNING POINT IN GOLD AND SILVER IS ABOUT TO COME BUT
ECONOMY AT GLANCE-Yellow metal was trading around it's psychological resistance-$1200 from almost two days but finally today it broke above and reached almost $1216, our trailed stop loss for our short-term trade was set at our entry price@1210, so we got nothing from this particular position as this was a risk-free trade. However gold wasn't even able to hold $1216 level for two minutes and at the time of publishing this report trading at around $1211 while white metal is at $14.13 Gold and silver prices have made little gains today but is it sustainable? one may wonder that gold and silver pushed above their major support areas so it means bulls are coming back with full force and now that's the turning point we all are waiting for Right?
wrong we certainly don't think so-we witnessed a slight sell off in the U.S. equity market today which aids some upward movement in precious metals sector however personally these small corrections means nothing to us,we always try to look at the big picture,anyways Today was the day for the release of the consmer price index about which we informed you already in our previous post which met with the expectations of those who beleived that inflation is not an issue in the U.S. yet-These report aids more strength to investors who are relax about the U.S. equity,inflation and world economical health-we also witnessed the steep slide in oil prices where Nymex crude oil futures prices hit an 11-month low yesterday.we also witnessed some dispute between EU officials and italian goverment and as a result italian bold yeilds surged in a significant manner-The U.S. dollar has made a small insignificant correction today but overall it seems The U.S. dollar index has a significant room to move upwards as we aren't seeing any clues by which investors should be afraid about the equity market sell off or the world economical health-Adding all these factors seems not good for precious metal sector atleast for coming months( our study suggests that despite the equity market correction investors and long-term traders aren't interested in the precious metal sector because they aren't afraid of a bear equity market. The non- fear factor can be seen in the financial market stress index published by the St -0.80% Louis Federal Reserve and the CBOE Volatility Index 6.14% ($VIX), also known as the fear gauge)
Technicals-we believes buyers should be very cautious at this point as we believe 1200 level will be easily broken and there is not much support until 1180. Gold 0.69% likely will not be able to support around its psychological level if the U.S Dollar keeps rising and there are numerous factors which are suggesting the future dollar strenth-The declined started in Asia-pacific trade after it went below the 100 days moving average at last week
Please, note-We do believe the major turning point in gold and silver is about to come in coming months but before that happens it's crucial to understand that the precious metals sector hasn't made their bottom yet, there is enough room for prices to go lower before we witness a substantial rally in gold and silver prices.
overall it seems that our long-term position in gold 0.69% and silver 0.57% will be highly profitable in coming weeks-we are very bearish for the precious metal sector and we think the downfall has just been started(short-term signals for gold and silver will be delivered soon to subscribers,and please stay intact in our long-term positions as we do believe profits are likely to much higher soon)
wrong we certainly don't think so-we witnessed a slight sell off in the U.S. equity market today which aids some upward movement in precious metals sector however personally these small corrections means nothing to us,we always try to look at the big picture,anyways Today was the day for the release of the consmer price index about which we informed you already in our previous post which met with the expectations of those who beleived that inflation is not an issue in the U.S. yet-These report aids more strength to investors who are relax about the U.S. equity,inflation and world economical health-we also witnessed the steep slide in oil prices where Nymex crude oil futures prices hit an 11-month low yesterday.we also witnessed some dispute between EU officials and italian goverment and as a result italian bold yeilds surged in a significant manner-The U.S. dollar has made a small insignificant correction today but overall it seems The U.S. dollar index has a significant room to move upwards as we aren't seeing any clues by which investors should be afraid about the equity market sell off or the world economical health-Adding all these factors seems not good for precious metal sector atleast for coming months( our study suggests that despite the equity market correction investors and long-term traders aren't interested in the precious metal sector because they aren't afraid of a bear equity market. The non- fear factor can be seen in the financial market stress index published by the St -0.80% Louis Federal Reserve and the CBOE Volatility Index 6.14% ($VIX), also known as the fear gauge)
Technicals-we believes buyers should be very cautious at this point as we believe 1200 level will be easily broken and there is not much support until 1180. Gold 0.69% likely will not be able to support around its psychological level if the U.S Dollar keeps rising and there are numerous factors which are suggesting the future dollar strenth-The declined started in Asia-pacific trade after it went below the 100 days moving average at last week
Please, note-We do believe the major turning point in gold and silver is about to come in coming months but before that happens it's crucial to understand that the precious metals sector hasn't made their bottom yet, there is enough room for prices to go lower before we witness a substantial rally in gold and silver prices.
overall it seems that our long-term position in gold 0.69% and silver 0.57% will be highly profitable in coming weeks-we are very bearish for the precious metal sector and we think the downfall has just been started(short-term signals for gold and silver will be delivered soon to subscribers,and please stay intact in our long-term positions as we do believe profits are likely to much higher soon)