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GLD
Where gold goes – silver follows!
The plunge in gold prices yesterday, rocked the markets with the precious metal shedding over $30 per ounce in the futures market as the big operators finally triggered the move in a classic pump and dump operation.
Gold breaks out of key congestion as fear takes hold!
In the past couple of days we have seen extreme and unusual price activity in the December gold futures contract with yesterday’s volume exceeding that of Tuesday’s by some distance, but without the requisite move higher.
Gold looks like a trap up move!
As another trading month comes to an end, gold traders will be watching wondering and waiting as the precious metal is once again poised delicately at a tipping point on the daily chart.
Commodities (oil) reflect the global tensions
In any escalation of political tension oil and gold are the two key commodities to watch. For oil the breakout and surge higher was largely driven by events in Iraq coupled with supply issues at Cushing, both of which combined to help power the WTI crude oil (USO, quote) contract up to the $107 per barrel price point as evidenced by last Thursday’s wide spread up candle.
Gold recovers, but the rally looks weak
On the daily gold chart we are at an interesting phase of price action. The weakness in the price of gold has been clearly evidenced since mid March, with each rally higher petering out. This was then followed by an extended phase of price congestion which saw the precious metal oscillate between $1315 per ounce to the upside and $1280 to the downside.
A critical week for gold
For gold bugs, 2014 promised so much following its long decline in 2013, which saw the precious metal lose over $500 per ounce. The first quarter of 2014 looked promising with gold recovering $300 per ounce and climbing back to test the $1,400 per ounce level – heady days.
Who Has the Power to Push Gold? Bears or Bulls?
The spot price of gold (GLD, quote) remain basically flat in the pre-market session as it continues to trade near its 2 ½ week high.
Ahead of the Open
As we begin the first full week of trading for May one has to wonder if the old saying will hold true…”Sell and Go Away In May”.
Silver prepares to rally … along with gold!
Longer term investors in both gold and silver have no doubt become increasingly frustrated over the last few months, as first the metals gain some bullish momentum, only to see this promptly reversed with a return of bearish sentiment.