06 January 2012
UPDATE
Gold is currently trading at 1625 levels. Investors seem to be stacking up more of gold on the back of increasing ten-sions over Iran and worsening Euro zone debt crisis. Support is seen at 1597.56 levels (55 days 4 hrly EMA) and resistance is seen at 1642.75 levels (200 days 4 hrly EMA). As suggested earlier stay away from longs until we see significant correc-tions. Look at Initiating shorts at good resistances. Outlook stays bearish: Look at shorts. Target 1500 again.
06 January 2012
Gold Resistance for Friday is the 1627-1636....if price rallies hard next resistance is 1644-1650....NFP Farm payroll numbers out on Friday Morning.....First support is 1600-1604 on a pullback...................next FOMC 1/25/2012...........
Scenario for today
Elliott: flat correction up 1633.17
It should try higher up to 1624.36 - 1633.50. Entry point 1615.22 or 1609.82. After this rise, a correction is expected.
Technical points
Key point 1,633.9900
Entry point 1,622.9000
Elliott 1,522.6200
Closing 1,622.7000
Projection 1,641.8800
Trendline 1,612.9500
Trendline 1,615.5300
Supports / Resistances
Res 2 1,644.3000
Ex-High 1,626.0300
Res 1 1,633.5000
Pivot 1,615.2200
Sup 1 1,604.4200
Ex-Low 1,596.9500
Sup 2 1,586.1500
05 January 2012
Resistance for Thursday is the 1619-1626..If ADP number Thursday morning bullish, we could move to 1640-1650 area First support is 1600-1604 on a pullback..
Next FOMC 1/25/2012..
GOLD has consolidated above $1,600 after trading in a $1,592 to $1,619 range overnight and opens this morning at $1,611. That fact that it held so well above support around $1,590 despite a surging USD and the plummeting EUR gives us cause to change out short term bias to bullish. We now expect an imminent test of $1,640 to occur and a close above this level will see us turn bullish in both the short and medium term. There is still speculation surrounding the diversification out of the USD and into gold by various government and semi government organisations across the Asian region and, in particular, China. We expect that this trend will continue throughout 2012 and that this will result in a significant and swift upswing in the price to closer to $2,000 by the middle of the year. We expect that gold will continue to outperform the USD.
Compass Direction
Short-Term: BULLISH
Medium-Term: NEUTRAL
Gold is now on a uptrend, but to which limits will it hit before correcting down? Let us show you!
Now gold is still in the buy zone and taking a long position up eventually to 1640 in the middle term is quite a possibly rewarding move.
Fundamentally, the threat of a 2nd Greece Bailout Rumors or speculation is what that is fueling the continued rise of gold prices.
Selling gold should only be attempted if it does significantly cross below the solid black line.
04 January 2012
Gold Resistance for Wednesday is the 1616-1626..First support is 1575-1582 on a pullback..FOMC minutes from 1/3/12 favors more loose policy..next FOMC 1/25/2012.
SPOT GOLD closed higher on Tuesday and the highrange close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are turning neutral to bullish signalling that sideways to higher prices are possible nearterm. Closes above the 20day moving average crossing are needed to confirm that a low has been posted. If it extends the decline off November's high, July's low crossing is the next downside target.
Metals: Slower Growth Means Lower Prices
Economic growth is slowing down across the world, and this is pushing metal prices down after a very volatile year in 2011. As long as the current economic conditions persist, the prospects for metal prices should remain under pressure. While there are several reasons to remain upbeat for overall commodity and energy prices, the story for metal prices is somewhat less upbeat. The reason for this is that slower economic growth means lower demand for metals, especially industrial metals - and this translates into lower prices. Meanwhile, it is well known that slower economic growth is not as bad for food products as income elasticity of demand is very small for these products, i.e., if income growth slows down, the amount of food products consumed does not go down as much or some may actually increase due to substitution effects.
Lower economic growth will be damaging for overall commodities. However, we already mentioned the caveats concerning other commodities in the current environment. For metals, the story is different as they definitely depend on demand coming from higher economic growth, especially in emerging market economies. In the end, industrial metal prices should depend on the strength of the Chinese economy. Thus, the faster the Chinese economy grows, the higher metal prices should be.
While some regions of the world - particularly the Euro region - have deteriorated, the prospects for Chinese economic growth have actually improved somewhat during the past several months as Chinese officials have started to undo some policies that were constraining growth earlier in 2011. Thus, as long as these expansionary monetary and even fiscal policies do the trick, the weakening spell for industrial metal prices may be short-lived.
For nonindustrial metals, the story is a bit different, even though they are also affected by economic growth. We believe that central banks across the globe are going to continue to keep current levels of monetary expansion in place, while some may expand upon what they already have. Meaning that nonindustrial metal prices should remain relatively high even though we have seen some correction toward the end of 2011.
03 January 2012
Gold Resistance for Tuesday is the 1583-1593 area and
1608-1612 if prices rally hard..
First support is 1542 on a pullback..
How will gold move on the technical side?
Gold is currently in a downtrend, there is a chance for it to challenge the black downtrend line, however it is more likely to currently fall a little back down to 1555 or more. However if gold does break the black line, expect a move up to at least 1588.
02 January 2012
Welcome to the New Year
The 21st Century Gold Bull market remains firmly intact. Price has now come down to the most important momentum line of the gold bull market. Ther are basicall two places to buy in 2012 if your a long term Gold Bull. This area is the first point and the other is the 1993 Red Channel Line. Of major interest is the 34 month moving average and how it is arriving at the red line. This is the other major buy point for 2012. If your a long term buyer of gold or your just arriving to the bull market, this area at 1520-1550 is the place to make a purchase for 2012. Should we get a move to the 34 month average, buy with both hands. These are the two most likely low spots for 2012.
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards.
