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Monday, May 19, 2014

Gold Trend May 20, 2014


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Long Term ~ Bearish - Need a monthly close above 1800 to confirm the bull market final phase underway.
Medium Term ~ Neutral – Gold on the verge of TURNING BEARISH MEDIUM TERM. A close below 1272 on a weekly basis does it.
Intermediate Term ~ Neutral – 1265-1272 downside target met, now need close above 1312 for neutral reading to be enforced and 1322 for bullish.
A close below 1272 goes to bearish reading.
Short Term ~ Neutral– The short term cycle is up in the air at the moment. A close below 1277 puts us outright bearish on the short term.
A close above 1312 for upside.

Initial Resistance 1298-1308 2nd tier 1312-1316
Initial Support 1278-1288 and 2nd tier 1265-1272


The last update listed resistance at 1298-1308 and the high was 1306.
Support was listed at 1278-1288 and the low was 1289.

The central banks press today.
You can just wait for their press release announcing market manipulation, like today's press release from the European Central Bank about the renewal of the gold agreement among its members:
The communiqué declares:
"The signatories will continue to coordinate their gold transactions so as to avoid market disturbances."

The European Central Bank, the Nationale Bank van Belgie/Banque Nationale de Belgique, the Deutsche Bundesbank, Eesti Pank, the Central Bank of Ireland, the Bank of Greece, the Banco de Espana, the Banque de France, the Banca d'Italia, the Central Bank of Cyprus, Latvijas Banka, the Banque centrale du Luxembourg, the Central Bank of Malta, De Nederlandsche Bank, the Oesterreichische Nationalbank, the Banco de Portugal, Banka Slovenije, Narodna banka Slovenska, Suomen PankkiFinlands Bank, Sveriges Riksbank, and the Swiss National Bank today announce the fourth Central Bank Gold Agreement (CBGA).

In the interest of clarifying their intentions with respect to their gold holdings, the signatories of the fourth CBGA issue the following statement:

-- Gold remains an important element of global monetary reserves.

-- The signatories will continue to coordinate their gold transactions so as to avoid market disturbances.

-- The signatories note that, currently, they do not have any plans to sell significant amounts of gold.

-- This agreement, which applies as of 27 September 2014, following the expiry of the current agreement, will be reviewed after five years.

Debt Crisis Poking its Head Up Again in Europe

By Martin Armstrong
We have seen a 4 month rally in euro-region debt with yields on Italian and Spanish bonds seeing their biggest one-day jump in almost a year last week. The sell-off in European sovereign debt began in Greece and has spread following the same lines of contagion that emerged 2010-2011. Bids have simply evaporated and prices have tumbled. The short-term traders were counting on the ECM supporting bonds just as the Japanese relied upon their central bank to support the Nikkei back when. The European derivatives have seen a mad rush to protect against losses.
Despite the fact that borrowing costs fell to near record lows of the typical bullishness in government that appears endless, the sudden price swing shows these markets are by no means stable. When fear strikes, it is going to be a blood-bath. The assumption that the European Central Bank would support the market is seriously unfounded. There is only one exit door here and this is perhaps the greatest risk we have seen in 200 years. Liquidity is becoming a very fleeting thing and that makes investing in European sovereign debt extremely risky.

Gold Short Term
It’s decision time for gold. Both trend lines are meeting up. When we look at the chart and see the choppy and overlap of the price pattern at a time when seasonal strength is favored, it doesn’t look good. The price path is most likely getting ready to move for the next two week trend.
If we lose 1272-1277 odds will favor we’re heading lower. The other event this coming week will be the RUSSIA/CHINA meeting. That might spark some metal movement.
On Tuesday, resistance is 1298-1308 and support 1281-1291. Anything below 1277 smells trouble and a break of 1265-1272 would not be good at all. We’d favor 1222-1240 if that happens. Monday’s failure at 1306 adds to the concern. We need a move above that on Tuesday for any relief. Odds favor one more day of this at most. We can still get a pop higher, but the danger is just below on price.
gold hourly price chart
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