Gold Editorials & Commentary

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.

Here is a chart I've never before published. It's a Step-Sum Symmetry Chart with a gold bias. What in the heck is that? Well, as we all know, during bull or bear markets there are about as many up days as there are down days.

After the US Supreme Court inexplicably redefined Obamacare to uphold its constitutionality, politics are very much back in the news. And with the all-important US elections only 4 months away, it's only going to get worse.

Friday's strong move to the upside caught a lot of traders on the wrong side of the market. Regardless of whether financial pundits refer to it as a short-squeeze or simply panic level buying is largely irrelevant.

Major peaks in the gold market tend to follow major shifts in the monetary backdrop -- from a high to a low monetary inflation rate -- with a lag of more than two years.

GLD - on sell signal.

What is a derivative? A financial instrument whose value is derived from an underlying asset. For example, the US paper dollar is a derivative.

Most investors are aware that the 4-year cycle peak comes into play this year. What few realize is how both Washington and Wall Street are using this cycle as a fulcrum for gaining political as well as economic advantage.