Chart usGOLD   Chart usSILVER  
 
Food for thought
Economists forecast only because they are asked or required to, not because they can
J.K. Galbraith  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1294.08-0.58
Silver 19.630.01
Platinum 1404.500.00
Palladium 794.900.90
WORLD MARKETS
DOWJONES 16409-16
NASDAQ 40969
NIKKEI 1451699
ASX 544532
CAC 40 443226
DAX 941092
HUI 220-2
XAU 90-1
CURRENCIES (€)
AUS $ 1.4802
CAN $ 1.5214
US $ 1.3811
GBP (£) 0.8224
Sw Fr 1.2201
YEN 141.4700
CURRENCIES ($)
AUS $ 1.0722
CAN $ 1.1021
Euro 0.7241
GBP (£) 0.5956
Sw Fr 0.8833
YEN 102.4300
RATIOS & INDEXES
Gold / Silver65.92
Gold / Oil12.37
Dowjones / Gold12.68
COMMODITIES
Copper 3.040.02
WTI Oil 104.590.83
Nat. Gas 4.740.21
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
Buy Gold On QE Exit News
Published : May 23rd, 2013
661 words - Reading time : 1 - 2 minutes
( 1 vote, 5/5 ) , 1 commentary Print article
 
    Comments    
Tweet

1.After the 1929 crash, the US Treasury & the Fed workedtogether.They revalued gold, and begana program of quantitative easing (QE).

2.Eight years later, in 1937, the Fed started tightening credit byraising interest rates, and America plunged back into economic depression.

3.After the 2008 crash, America entered into a very severerecession, and the Fed began a new quantitative easing program.

4.Recently, the mainstream media and bank economists have been quiteemphatic that the economic recovery is solid enough for the Fed to beginreducing the size of the QE program.

5.While it's unknown whether a reduction or exit from QE would createan economic crash like 1937, institutional owners of gold have been sellinghard, and shorting it.They believe thata reduction in QE would cause gold prices to fall, regardless of whether theeconomy faltered or not.

6.Sentiment datashows that most gold analysts are very negative now.They are convinced that the price of gold islikely going much lower, and maybe it is, butI'm not so sure about that.

7.The timeless market adage, "Buythe rumour, and sell the news!" may be something to carefully ponder, atthis point in time.

8.Here's why: A lot of theanticipation for a reduction in QE may already be factored into the currentgold price.

9.The question you may need to ask yourself is, have the bearsdropped the ball, by overplaying their QE reduction card?

10.The dailycharts of both gold and silver are beginning to show some bullish signs.On Sunday night, silver plunged about twodollar an ounce, but there wasn't muchvolume, which is bullish.

11.On Monday, Moody's warned they would chop America's credit ratingif more action is not taken to reduce government debt. That caused a "skyrocket" move in silver, and all ofSunday night's losses were recovered.

12.Monday's trading volume was truly enormous, and there is now a "key reversal" day apparent on the dailysilver chart.

13.To view that chart, please clickhere now.Look at that volume bar!

14.Note that while the price of silver went to a new low on Sundaynight, my stokeillator did not, and the two lines are beginning to show signsof a "budding buy signal".

15.There is also a potential inverse head & shoulders patternforming on this chart.If it iscompleted, silver could blast all the way to $30.

16.The daily goldchart is equally impressive.Please clickhere now.You can see that the leadred line of my stokeillator has arrived at the 20 level, and is beginning to display a bullish hook.

17.There is also a classic double bottom forming, and I'm sure thatmany technical analysts at the major banks may soon begin talking about it, intheir daily commentary to investors.

18.For this double bottom pattern to "activate", gold must trade at $1490, butif it does, the technical target is.. $1680!There are probably very few gold investors who believe such a move is evenpossible, let alone likely, but marketshave an odd habit of doing what is least expected.

19.There is a big wall of technical resistance in the $1500-$1550 area, but if most of the QE-exit newsis already priced into the market, is it possible that gold's upside actioncould shock a lot of people?I think so.

20.Traders can sell lightly at $1400, $1420, and $1440, if the pricegets there.It's good to take regularprofits, like pruning a tree, regardless of how high any analysis suggests theprice will go.

21.To view the short term price action for gold, please clickhere now.That's the one hour barschart, and you can see that a possible inverse head and shoulders pattern isforming now.

22.Please clickhere now. Double-click to enlarge. You are looking at the 2 hour bars chart forGDX.Most investors in the goldcommunity own a lot of gold stock.GDXmust rise over the highs at $31.27, to trigger technical buying from momentumtraders.

23.There may be an inverse head and shoulders pattern forming, whichcould help push GDX to the early April price of $33.71 this week.

24.Is it possible that just as QE itself is producing "diminishing returns" for the US economy,QE-exit news will soon have minimal effect on the gold price?I think so.Any further QE exit news may be a buy signal for gold!

Graceland Updates

Writtenbetween 4am-7am.  5-6 issues per week.  Emailed at aprox 9am daily.


Tweet
Rate :Average note :5 (1 vote)View Top rated
Previous article by
Stewart Thomson
All articles by
Stewart Thomson
Next article by
Stewart Thomson
Receive by mail the latest articles by this author  
Latest comment posted for this article
Just can't believe people can't see the Fed. Manipulating the price of Gold and Silver?? Gold is up every morning and when NY opens, Gold drops like a Rock. Look at what it costs to buy Gold or Silver the Margins are just crazy. They only have paper, No  Read more
sparrow - 5/23/2013 at 1:25 PM GMT
Rating :  1  1
TOP ARTICLES
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Stewart Thomson

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form, giving clarity of each point and saving valuable reading time.
Stewart Thomson ArchiveWebsite
Most recent articles by Stewart Thomson
4/15/2014
4/9/2014
4/1/2014
3/25/2014
3/18/2014
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
 
       
Just can't believe people can't see the Fed. Manipulating the price of Gold and Silver?? Gold is up every morning and when NY opens, Gold drops like a Rock. Look at what it costs to buy Gold or Silver the Margins are just crazy. They only have paper, No real Gold or Silver. When will people Understand what going on???
Rate :   1  1Rating :   0
EmailPermalink
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer