Gold And Silver Are Trapped In A Low-End Trading Range

Syria: An example why gold and silver have not rallied; and an example of why gold and silver ultimately will rally.

As a side note, never in the history of the world has a fiat paper currency ever survived.  Never before in history has there been so much fiat-created paper currency nor has there ever been as much debt in the world.  Never before has the demand for gold and silver been greater, nor the supply of same less, relative to the demand.  Obviously, as we have stated in the past, the natural factors of supply and demand are of no consequence for the pricing of gold and silver.

This makes Syria an interesting topic, seemingly non-related to how PMs are currently priced, and there are hundreds of topics that could be used to make the same point, which in itself is part of the point to be made.  Syria is but a symptom.  The core is the international globalists creating havoc around the world as its massive Ponzi scheme has begun to spiral out of control.

These are the influencing forces on gold and silver, not record coin sales, not record purchases month in and month out for the past few years by China, India, and Russia.

Waiting patiently on the sidelines are gold and silver, wanting to have their day, and that day will happen, just not knowing when.

Again, while the current rally seems fairly decent on the daily, the more controlling larger weekly time frame is not that impressive.  A weekly chart is a stronger guide than a daily. Even the smaller range of last week, relative to the week before, suggests sellers are keeping a check on this market, at least for now.

 The daily chart reflects more of a TR [Trading Range], as opposed to a rally.  While there have been a series of higher swing lows, the 1170 swing high has not been exceeded, and that keeps our definition of a trend change in the TR category.  The recent strength in gold is not as positive as it may appear to many.  More is needed.

A red flag is a note of caution that could lead to change, unless otherwise qualified.  Silver remains locked in a protracted TR, and until price breakout above the 19 area, on a wide range bar and strong volume, silver is a non-event, no matter what the fundamentals say.

Even the apparent “breakout” to the upside of a minor TR has not been that impressive, in terms of upside follow through after last Tuesday, 4 bars from the end.  As noted on the chart, the mid-range closings of Thursday and Friday, and sharply higher volume on Thursday, suggests sellers had a slight edge over buyers, on an intra-day basis.  It is just a note of caution as/if the rally continues higher into the next resistance level.

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Courtesy of edgetraderplus.com