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Gold Tests 5-Week Highs. "Should Continue Pushing Higher": Citi
On the back of dismal data this morning merely compounding the belief that whatever happens, there will be no Taper anytime soon (and record high physical premiums over spot as Indian demand surges), gold prices broke back above $1360 this morning to five-week highs. Of course, that 'rise' was very quickly squelched as stocks POMO'd higher from the US open; but, as Citi's FX technicals group notes, the break of $1343 points to a test of $1430 and a bias to testing back above the $1522-32 region.
Via Citi,
Gold and Silver should continue pushing higher
– Gold is breaking through resistance around $1,343 and should move towards the $1,430. We continue to be of the bias that Gold is setting up for a multi-year rally and a break above the $1,522-$1,532 area would solidify this view.
– In periods in which Gold does well, Silver actually outperforms. It is already setting up a double bottom which targets $24.40 and an overshoot of that area could take Silver towards $26 in the near term.
Gold is pushing higher
Gold is pushing higher through the 55 day moving average and we continue to expect higher levels in both the near and long-term. The next resistance level to watch in the short-term is the $1,430 area, where the 200 day moving average converges with the August high.
Through there the $1,522-$1,533 area could provide further resistance. This area held well as support in 2011 and 2012 and the break below this year led to accelerated losses. A break higher through that area would suggest to us that the correction for this year is over and that the long-term uptrend has resume (as we have previously articulated, we remain of the bias that Gold will continue to see gains in the coming years and maintain a long-term target of $3,500 – this is further supported by the idea of no Fed tapering for the foreseeable future)
Silver outperforms when Gold moves higher
We have seen over the last decade that in the periods where Gold rallied, Silver actually outperformed (red arrows). During periods where Gold prices declined, Silver did worse than Gold (green arrows). If we are in fact seeing the beginning of a long-term Gold rally, we would expect Silver to once again outperform.
Levels to watch on Silver
Silver is now through the neckline of a double bottom which targets $24.40, in line with resistance around the $24.24-$25.00 area, where the 200 day moving average converges with the late April and August highs.
Through there $26 is an important resistance area (lows from late 2011 and 2012) and a move through there suggests much higher levels for Silver going forward.
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The Blythe (or her evil replacement) may have something to say about this.
Mr. LTER and I agree that gold is a good place, at least until Homeland Security comes by to round us up...
***
I will try to find out more about that huge gold formation a guy told me about in Cocachimba (N Peru).
No need to worry about DHS. If they round us all up we'll be having a great time in the camps. I hear they have shuffleboard!
And PS I love gold but it's still in a down trend until it goes above 1400. Wake me up then but don't be surprised if 'Citi' is telling you to sell then.
an oldie but a goodie......
FAKE PAMP SUISSE Tungsten Filled Gold Bars found in NYC.https://www.youtube.com/watch?v=rOmKCQQz2WA
It appears that people are buying physical again.
US Mint reported October sales (42,500) of AE's are more than 3 times the sales in September (13,000)
After I read that Goldman Sachs say Gold was a slam dunk sell a couple weeks ago, that was my trigger to buy. I convinced my kids to cash in their Patriot Bonds early, and I got a loan on my 401k. We purchased a whole lot of silver, and it is so nice to hold it in your hand. I don't even care what the market does anymore, because the paper is gone. We've got SILVER!!!!
I think we'll be at $1,500 even by Christmas.
But until then, happy halloween zero hedge.
Cue the WSJ hacthet job on gold in 3...2... Ah, there it is!
I'll save you the trouble of reading the whole thing...not one mention of demand from Asia anywhere in this article about gold 'investing.'
Silver at a critical spot tonight:
Live Spot Price Chart: http://www.pmbull.com/silver-price/
No way to tell which way it breaks, the article above notwithstanding.
I guess it goes where the bullion banks want it to go.
From the comments section at SRSRocco Report: (h/t Anon)
"@Rocco — I am not sure about the theory that all commodity prices will rise once people invested in paper and digital money see the light. The absolute majority of these people will lose ALL their purchasing power. There won’t be an exit for them. Already today there’s not enough gold, silver and oil to go around. The smart money is divesting dollars and paper instruments for years, although the Lehman collapse accelerated the trend. My personal opinion is that very soon there will be a weekend conference, something like Bretton Woods but much shorter and more secretive. And then on Monday when the banks and markets open, the world will already be a different place. There will be a new monetary system probably made up of the currencies of the 7 or 8 most productive countries in the world and 20% physical gold. So the dollar will lose its ultimate power and will retain maybe a 15-20% ratio. And that will be enough to kill almost all investors. Those who bought physical gold and silver beforehand when it was available will make a killing. The rest of the population won’t know the difference because their debt and credit balances will be simply rolled over into the next system. Business will continue as usual."
This pretty much sums up my position.
Gold Doomer Douchez!!!!
never gets old ;)
And this is a Kool-Aid drinker, bitchez.
Love your fiat...we know what value it returns to.
I understand both gold and fiat better than you doomer douchez and as a result have more of both gold and fiat than you doomer douchez!
Jamie, is that you? I know the quarter was bad but I didn't think you'd have to do your own trolling.
This is probably one of ZH's old trolls. Sounds a lot like Spaulding Smailes or William the Bastard.
Good times bitchez....
Thses .gov trolls are so predictable.
Hurry Teddy. There are three goats trying to cross your bridge.
The manipulation in metals is so rampant that almost any chart becomes meaningless.
No one should buy based on these charts and neither should they sell based on them.
Let's not blow smoke up each other's skirts here... until it cracks $1850, it's a SIDEWAYS market.
'blow?' 'skirts?' 'cracks?'
phew. i gotta go fondle me some phys.
Make sure you're wearing protection if you're going to fondle the 24K stuff.
good thinking.
i'll be doublin' up
Short it! We are being set up.
Yep. A manipulated smack down is about due. Look out below.
Be patient, keep your powder dry: they will give it one moar push down.
But Goldman Suck said that if the dept celling is rised gold will fall. Its like a slam dunk...
Ummm,aren't we supposed to buy the physical and ignore these banks? Reality check people, we have insolvent governments and banks.
What will the price of gold be when the USD is worthless?
"What will the price of gold be when the USD is worthless?"
60,855 Chinese Yuan
15 ounces of Silver
Priceless
Obvious takedown trap is obvious. Stolpernomics.
bitchez,,,,,,, bitchez
Gold Bitchez, the dollar is coming home !!!
When the dollar comes marching home again, Hurrah, Hurrah,
We’ll give ita hearty welcome then, Hurrah, Hurrah;
The men will cheer, the boys will shout,
The ladies, they will all turn out,
And we’ll all feel gay,
When the dollar comes marching home.
Remember the Greyback Biitchez !!!
One more time. With feeling!
Drop. Shear the sheep. Buy low. Pump. Sell high.
Wash. Rinse. Repeat.
Gold Chart Oct 25th Close. Fibonacci, Inverse H&S, Trendlines, Laterals, Support & Resist Levels, Studies... http://pic.twitter.com/yEuW8smyZu
The longer term trend line also comes in at 1400. Good luck cracking through that right now. A month or two from now is another story.
Patience Grasshopper......... The Cat is just toying with the mouse, trying to lure it out into the open. Yes, another JPM orchestrated smack down is around the corner AFTER they let AG run above $24 an oz on the way to $25 then CRACK ! JPM, acting as Fed's bitch will smack both Silver and Gold down again. So, now is a good time to build up some cash, and wait for the Fed to order JPM to put PM's on sale again.
As a side benefit, the Fed via JPM have put a floor under both Gold and Silver. Even the Fed realizes they can't hammer / POMO the PM's into oblivion. If the Fed does pummel the PM's too low for too long they will drive too many miners out of business and disrupt too much of the supply. Once the supply of PM's gets disrupted, that is the kind of event the Fed cannot so easily put back in the bag and contain. The Fed has in fact taken most all of the downside risk out of PM's by suppressing the price so low it almost has producers going out of business given today's current high input cost structure for miners.
Go long and DEEP, but wait until the price is just juicy enough to really load up. .
BOJ "buying up" the NIKKEI tonight?!!!!! Fuck YOU CB's!!!!
You seem to be mostly bond traders who live in New York City on vast trading floors probably in banks(?).
Am I correct? You seem to be the smarter of the two.
My wife the hobby Keynesian economist and total brain washed Krugman deciple wants to know why you seem to be such crazy gold bugs.-)
Bitcoin bugs.
Stack On
Why do people insist on gambling with insurance?
Lol Citi.
GoLd BiTcHeZ!
Another round of short the paper, (continue to) buy physical
Ah, I love it.
December is often a peak for the metal and from where I'm sitting it's right down so any slight move up below 1480 will not survive January/Feburary normalise, sorry knock down. Patience is a virtue.
Yes, heading higher in gold - 1425 is the first resistance level - followed by near 1500
http://bullandbearmash.com/chart/spot-gold-daily-closes-flat-shows-doji-...
This move up is likely correction - following this, more downside ahead
1666 is in the near future.
Gold COMEX Claims Per Deliverable Ounce Rises Above 55 at These Prices
Jesse reports about the ongoing Game of Musical Chairs in the Western Fractional Reserve Gold System with manipulated LBMA and COMEX Gold markets. With China taking now all physical delivery from the system the entire Western Gold market is under enormous pressure. We found it very positive that with more unleashed attacks on Gold - in order to redeem physical Gold from GLD ETF holdings - it is more and more difficult for Gold market manipulators to keep it under $1300. Physical demand is pushing the price right back up. Goldman Sachs clients are not doing very well if they Sold their gold below $1300 following the House Gold Sell Call. This week we had a very impressive breakout in Gold, Silver and Gold & Silver mining stocks. http://sufiy.blogspot.co.uk/2013/10/comex-claims-per-deliverable-ounce.html#