Gold Market Analysis
Technical analysis to forecast and predict the future price trends of gold and other precious metals, as well as the US Dollar and the Euro.
I really don't have much to bring your way this week beyond charts.
Tonight I want to bring everyone up to date on the many H&S top patterns that have been forming for sometime now.
There is a lot of lopsidedly-bullish analysis on China in the mainstream press and in the "blogosphere".
"When Injustice becomes Law, Resistance becomes Duty." -- Thomas Jefferson
IT'S TIME TO FACE THE TRUTH
We're still up in the air as to what is going to pass in Europe but perhaps this week we will see.
The fortunes of Europe's beleaguered euro currency have been heavily influencing US markets. Both stocks and commodities have been battered down recently by overwhelming euro bearishness.
The Biblical story is told of a tower built ever higher in order to achieve contact with the heavens, lest they be scattered upon the earth. They were scattered when the tower fell.
Gold's biggest problem since February has been one of relative weakness. This weakness in turn has kept the market-moving hedge fund players away from gold.
"Has gold finally bottomed?" That is the big question we are going to attempt to answer in this update.
It's time to update our long-term weekly charts showing how the gold sector, as represented by the Barrons Gold Mining Index (BGMI), has performed in US$ terms, gold bullion terms and S&P500 (SPX) terms
With a bank run in near full force in Greece and the country on the verge of exiting the Euro while still searching for a leader the world markets are reeling but gold and silver are finally catching a bid.
Gold stocks have been pummeled mercilessly this month, their price action looking almost apocalyptic.
Normally catching a bottom is not difficult. Bottoms tend to occur instantly while market tops form during a process. Yet, I've found that bottoms of long-term significance do not occur instantly.
It was a decent down-week early on but then things stalled Thursday before it was announced that JP Morgan had a small trading loss.
Gold has had a rough time lately, grinding relentlessly lower. Such technical weakness has naturally spawned increasingly bearish psychology.
The government recently reported that the U.S. economy grew at an annual rate of 2.2 percent, below the expected 2.5 percent rate.
If today's landscape was a war setting, it would feature collapsed buildings, rubble on the streets, empty warehouses, smoke spewing upward from numerous city heaps, and fire hoses sending water in every co
Over the weekend I had an interesting conversation with a local trader.
It was an interesting week with US markets looking strong briefly, only to show us failed breakouts and then reverse hard along with many leading stocks.
With the US stock markets surging nearly a third higher in just 6 months, the odds are rising for a major topping.
Investors and traders just can't seem to catch a break when it comes to economic news. For example Tuesday in the United States we saw strong ISM manufacturing numbers which surprised the market.