[Some excerpts from the latest issue of the Weekend Update in the
subscribers section of the website.]
The lack of safe haven demand, driven by a perceived improvement in
the global economy, has played a key role in keeping gold and silver prices
range bound, however, the chart patterns that have developed in recent months
are likely to be resolved with a big move up or down in relatively short
This could attract the attention of hedge funds that have clearly lost
interest in the metals lately, as the stock market has pushed higher.
Fortunately for precious metals investors, demand from Asia remains strong as
evidenced by record gold imports and record gold production in China
along with reports of a surge in gold smuggling in India following duty hikes
by the government, part of an ongoing (and, ultimately, futile) campaign to
limit gold imports.
Long-term macro considerations such as central bank money printing and
intractable sovereign debt troubles in many developed nations continue to
support precious metals prices, but, absent an outside catalyst, a near-term
major move higher for precious metal prices seems unlikely.
In a sign of just how range-bound metal prices have become, spot gold
closed on Friday exactly where it did a week earlier at $1667.60 an ounce, while
the silver price fell 1.3 percent, from $31.84 an ounce to $31.42.
Gold tested the $1,680 an ounce level on two occasions last week, and
silver tested the $32 an ounce mark as both metals just don’t seem to want to
go much higher or
lower… for now.
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