Gold Daily and Silver Weekly Charts - Gold Shows Some Resilience

Gold and silver were hit early in the overnight, and there was some obvious quote stuffing and other gimmicks in the gold futures to take the price lower. Don't take my word for it, it was Nanex that printed this and showed the data.

And gold once again would not be denied, and held the 1200 level and then some.

Let's see how we keep going in this potential chart formation.

Silver is lagging a bit here, which makes some sense because this is still a 'safe haven' trade despite what Goldman might say about anything.

And as you know, if things continue as they are, I do expect a 'dislocation' in the physical gold market, probably later this year.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Goldman Says 'No Fear' and Market Listens

Stocks were in rally mode today and the release of the Fed minutes was no impediment as they held their gains into the close.

This looks very much like a technical, 'short squeeze' rally, which is somewhat narrow in scope and with declining or flat volume as the indices push higher.

I am getting a desire to buy some volatility again around here, but perhaps I will wait to see what happens tomorrow.

Have a pleasant evening.

Gold Daily and Silver Weekly Charts - Goldman Says Have No Fear and Buy Our Paper

Goldman analyst Jeffrey Currie came out this morning with a 'sell gold' recommendation for Ma and Pa Muppet.

I was fortunate enough to hear his explanation for this in his own words on Bloomberg TV, which had touted his gold call about every fifteen minutes all day.

The net summary of Mr. Currie's forecast is that Goldman's economists think that there ought to be no fear in the financial paper markets, since there is an historically low chance of a recession, less than fifteen percent, and he sees no real possibility of negative interest rates.

Therefore, since in his mind gold is strictly a 'fear trade' and since Goldman says to have no fear one ought to therefore sell gold.

Do with that what you will.

As for my own forecasts, I see the world economy fraying substantially throughout the year, with the domestic risk of inflation unusually high relatively speaking, and the geopolitical risks to be also rather elevated.

But at the end of the day, gold is now trading as a currency, and Uncle Buck was on a no fear tear this morning.   And no matter what Mr. Currie may be saying, I am watching what Asia is doing.

So far so good on the charts as noted below.

It may be a bit of time before one might determine whether the lip of the cup is straight horizontal or slanted IF the chart continues to develop.

There was very little action at The Bucket Shop on the PM delivery front, and some silver was shoved around the plate and taken out of the warehouses.   Not much happened in other words.  What a surprise.  The Bucket Shop is a monumental mausoleum for what has gone wrong in the US markets.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Risk On, Buy the Dip Technical Trade

Stocks were in rally mode today after some recovery in the rest of the world while the US was on holiday.

Stocks have risen back to the 'dead cat bounce' level of overheard resistance from former formations and support.

Wall Street was out thumping dodgy financial paper today.  I am sure that will prove to be a sound investment for Ma and Pa Muppet.

The economic news this morning was very poor.

Have a pleasant evening.

NAV Premiums of Certain Precious Metal Trusts and Funds

The gold/silver ratio is historically rather high at 78.5.

The Retracement In the Price of Gold - Let's See If Gold Can Hold 1190

Here is a closer look at the retracement of gold we have seen as of this morning.

While the US markets are closed for Presidents' Day, the rest of the world is open for business.

As you can see from the second chart from Friday, gold had become quite overbought short term.

And I will also caution that the markets have not suddenly turned honest and efficient overnight.

I will be otherwise engaged at hospital for a colonoscopy, an activity a bit less distasteful than watching the political debates, but inconvenient nonetheless. And so I will not be available for emails or comments.

So after all that I think I will take the rest of the day off.

I would like to see gold hold 1190.  Let us see if that is in the cards.

 See you tomorrow.