Gold Editorials & Commentary

Last week we examined the bullish symmetrical triangle pattern in gold and identified the potential breakout points in this time-tested technical indicator.

There are no certainties in the investment universe. Investors are forced to weigh up the various risks and assess the probabilities involved before committing themselves to a course of action.

"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government.

"The things that will destroy us: Politics without principle, pleasure without conscience, wealth without work, knowledge without work, knowledge without character, business without morality, science without humanity, and worship without sacrif

GLD - on buy signal.

Prices testing 200ema again.

For what seems like a few months, I've been saying that there is no chance for the Dow Jones would ever close above 13000; okay I was wrong! But I wasn't wrong about what drives the stock market up and down; the "policy makers."

Gold has been deeply out of favor lately, languishing in its usual summer doldrums. This sentiment wasteland is driving traders to flee wholesale, including the futures players. Their mass exodus from the gold market is readily apparent in futures data.

Gold's historic run-up from $250 to nearly $2,000 an ounce in the last 10 years has underlined the long-term value and intrinsic worth of a key asset.

As preface, consider that the USTreasury 10-year yield went below 1.4% this week. Some unenlightened celebrate the asset appreciation and point to a successful asset in performance in an otherwise dismal financial market.

Since the start of the global economic recovery in 2009, the status of the U.S. economy has been a perplexing one.

GLD - on buy signal.

Buy/sell signals within a consolidation are potential whipsaws.

Most would be investors and speculators in the Precious Metals sector at this time look and behave like the raw recruits at the start of the film An Officer and a G

It can be seen from the first chart below that there is now no more room for indecision. Breakout (up or down) must happen this coming week. Note falling volume as price floated up over the past 7 weeks.

Well the dog and pony show Wall Street calls "the stock market" ended up for the week. However, once again, it developed a bout of acrophobia just as it was a few points shy of 13,000 (or a BEV -8.22% in the blue plot below).

It was just about a year ago today when the S&P500 was sitting at fresh highs and everyone was enjoying a rather upbeat summer. It was a nice summer, the markets were calm, and there was a surreal sense of optimism.

After being sucked into the general commodities correction, silver has been relentlessly drifting lower since late February. But this weakness has forced the white metal down to a very bullish place technically.

After being sucked into the general commodities correction, silver has been relentlessly drifting lower since late February. But this weakness has forced the white metal down to a very bullish place technically.

Although it probably won't happen within the next couple of months, it's a good bet that the ECB will eventually be prodded into monetising a large amount of European government and commercial bank debt.

It's not easy to make a buck in this type of market so we're sitting and waiting for the right setups to form mainly with the odd little trade here or there.

GLD - on buy signal.

Buy/sell signals within a consolidation are potential whipsaws.

"We have reached a profound point in economic history where the truth is unpalatable to the political class - and that truth is that the scale and magnitude of the problem is larger than their ability to respond or comprehend - and it terrifies them

After making new highs about a year ago we have seen Silver and Gold consolidate for roughly the last twelve months.

Investors are worried that this summer will witness a repeat of the summer debacles of 2010 and 2011. The stock market has itself vulnerable to negative news from overseas as well as earnings disappointments.

With gold, silver, and their miners' stocks drifting listlessly near correction lows, the sentiment in precious-metals land is even more pessimistic than usual. Bears abound while bulls are now an endangered species.

Gold and stock market forecaster have been using cycles in price that repeat every certain amount of trading days to help them spot key reversal areas in the financial market.

In recent public articles, the USTreasury Bond bubble was described, supported by Interest Rate Swaps to produce artificial demand and to create an illusion of a flight to safety in toxic USGovt Bonds.

The media is now fixated on an apparently new feature dominating the economic landscape: a "fiscal cliff" from which the United States will fall in January 2013.

Summary and Conclusion

The term Stock market predictions is a very controversial topic and does seem to give off a negative/non-credible overtone to most traders, investors and the general public.