02 December
The Golden Bell have Rung. Gold & Silver to go up due to Banks Increasing liquidity
The Golden Bell have Rung. Gold & Silver to go up due to Banks Increasing liquidity
It is quite official central banks have decided to release liquidty/money printing and to make things worse, they decided to lower reserve requirements. Money is now flooding into the streets. One word to protect yourself: GOLD
01 December
Gold prices rose sharply on Wednesday after major central banks around the globe including the bank of Canada, the Bank of England, the bank of Japan, the European Central Bank, Federal Reserve Bank, and The Swiss National Bank announced a coordinated effort to boost liquidity to the global financial system in order to ease tensions in financial markets, which put the U.S. dollar under huge pressure, as risk appetite improved in markets, where traders targeted risky assets, providing gold accordingly with strong bullish momentum.
Moreover, the ADP employment report from the United States showed that private employers added 208,000 jobs in November, well above median estimates of 130,000, while the Chicago PMI also rose above median estimates, which further supported confidence in markets and boosted demand for risky assets.
Traders will continue to monitor the developments from Europe regarding the debt crisis, where rising yields in Europe, especially in Italy suggest investors are concerned amid the uncertainty that is surrounding the outlook of the EU debt crisis, especially since investors are still skeptic even after EU finance ministers agreed to increase the firepower of the EFSF, and proposed expanding the funding for the IMF to help countries in Europe to withstand the debt crisis.
Traders will be eyeing the ISM manufacturing index for November, which is expected to show rising activities, but before that investors will be eyeing the weekly jobless claims, which are expected to have dropped last week.
Accordingly, we should expect more fluctuations in prices, but if the current wave of optimism prevails, we should expect gold prices to extend their gains, but we should note that the level of uncertainty is very high, and investors are ought to remain cautious.
30 November
November is coming to a close. What would happen to gold now? With the hopes of another Euro-Bailout, gold seems to be going up. Bailout = increase in money supply = increase speculation in gold.
Ok here is the deal. Gold is now at the critical junctures of critical junctures for the short-term. Gold if gold breaks through the resistance and into the buy zone, a good move to 1740 is definitely on the cards.
29 November
GOLD has been looking very bullish of late even as we declined from $1,800 back towards $1,665 the market was buying dips awaiting another rally and we have just started it. Last night saw a breach back above $1,711 which was a very important level and we are now on the way to much higher levels as investors continue to diversify their portfolios in precious metals as equities are just too volatile and directionless right now. Gold finished US trade sharply higher by 1.65% at $1,713. We are not the usual bulls who start to rant when positions go our way and we have actually stayed bullish for this ride lower clearly stating that prices can only move higher in the next 12-24months as uncertainty remains evident and as debt problems plague the world. Last night was very positive not only for commodities but also for currencies, apart form the Euro, and equities which rallied sharply. Gold has now broken through key resistance at $1,711 and we now look for a target of $1,735 initially and then $1,750 which is major resistance. Intra day today we expect further gains to target last nights high at $1,720/21 before any selling pressure returns. Support is solid at $1,700 and we expect this level to hold and provide another good buying opportunity.
Compass Direction
- Short-Term: BULLISH
- Medium-Term: BULLISH
Gold Technical Analysis 28th & 29th November 2011.
Gold recently has been struggling at the 1670-1700 area without much push either way. It is good to note that fundamentally gold will still rise against the US dollar due to obvious reasons (debasement of the Dollar, weakening confidence in the USA and abysmal interest rates). Any mistake made in trading in longing can be wiped clean by just waiting (as long as it is within the bullish channel).
Gold currently is in the shorting zone, and applying a little analysis, the momentum for the downwards movement is still present. Targets to take profit for shorters could perhaps be 1668 or 1670. Longing gold can be attempted if it goes above the 1690-1692 level and take profit at the next resistance level (1698 – 1700).
Why is gold not going higher? Firstly is due to the money flowing from the Eurozone to the US dollar and this chart is the XAU/USD meaning gold in terms of US dollars. However one thing to note is that this is just short term temporary noise.
Gold Technical Analysis for Nov. 28th, 2011
The gold market fell again on Friday as traders continue to buy the Dollar in general. The market isn’t breaking however, and is quite content in sitting at these levels. This shows that the gold market might finally be getting the much needed rest that it wanted for so long. The $1,600 level should continue to be massively supportive going forward, and as a result we are still buyers of this market – especially if we can get a couple more of these relatively quiet days.
Weekly Gold Fundamental Analysis November 28-December 02, 2011
Gold prices extended the losses last week, as the U.S. dollar extended its gains to reach the highest level in seven weeks on mounting fears the European debt crisis is worsening, after Germany witnessed one of its worst Bund auctions since the inception of the Euro, while yields on Italian bonds rose last week above 7%, a level that forced Greece, Ireland, and Portugal to seek bailouts, and yields on Spanish bonds also rose last week, which raised fears that the debt crisis is spreading into major economies within the euro zone area.
Meanwhile, economic data from the United States generally showed worse than expected conditions, where GDP fell below projections, as the U.S. economy expanded in the third quarter by 2.0%, down from 2.5% in the prior estimate, while the income report showed that spending levels expanded at a moderate pace ahead of the holiday season, which raised concerns over the outlook of the world’s largest economy.
Europe will be very much the focus next week, where traders will be eyeing new developments on the European debt crisis, where Italy and Spain, the third and fourth largest economies in the euro zone area, are facing mounting pressures from the debt crisis, and the uncertainty that is surrounding the outlook continues to weigh down on confidence.
Traders will be eyeing the EU Finance Ministers meeting next week, where they will discuss the recent developments regarding Greece, and most likelyI taly, and the European Financial Stability Facility fund. Moreover, traders will be eyeing bond auctions inItaly,France,Belgium, andSpain. Accordingly we should expect high levels of fluctuations in markets.
Important data will be released from Europe and theUnited Statesnext week, where the ISM manufacturing index is due next week. Nonetheless, the main focus will be the employment data, as investors will be first eyeing the ADP employment report on Wednesday and after that their attention will shift to theU.S.jobs report, which is due on Friday.
We continue to expect that gold prices will rise over the coming period, however, we also expect volatility to continue to dominate gold prices over the short term, as despite the recent improvement in overall conditions, yet risks are still threatening the progress of improvement, especially as the outlook for global economies remains full of uncertainty. We also expect Europe to continue to dominate the headlines next week, where developments inFrance,ItalyandSpainshould dominate the sentiment in markets.
