This page has been archived and commenting is disabled.

Gold Surges Above Resistance At $1,334 As Israel Prepares Possible Invasion Of Gaza

GoldCore's picture




 

Today’s AM fix was USD 1,343.25, EUR 985.22 and GBP 784.61 per ounce.
Yesterday’s AM fix was USD  1,322.50, EUR 971.71 and GBP  773.08 per ounce.

Gold climbed $8 or 0.61% yesterday to $1,327.70/oz and silver rose $0.07 or 0.33% to $21.11/oz.

Silver is outperforming again today. It is up 2% to its highest since mid-March at $21.54/oz. It's currently on track for a sixth consecutive week of gains, a feat it hasn't pulled off since early 2011, according to Reuters.


Gold In U.S. Dollars and 50, 100, 200 Simple DMA - 5 Years

Gold surged above strong resistance at $1,334/oz this morning and is looking better and better from a technical perspective.  There was strong chart resistance at $1,334/oz as this was the 61.8% retracement of the March to June retreat. Traders bought gold once we breached that level and there was an acceleration in gold’s move higher.

Gold has now broken convincingly above the key 50, 100 and 200 day moving averages (see chart).  Gold futures trading volume this morning in London was 62% above the average for the past 100 days, data compiled by Bloomberg show.

Gold climbed to the highest in more than three months as Middle East tension led to renewed safe haven demand and after the dollar weakened following the U.S. Federal Reserve minutes.

Israel has mobilized 20,000 soldiers for a possible ground invasion of the Gaza Strip, as militants there extended their rocket barrage and the Palestinian death toll increased.

The technicals and fundamentals are increasingly aligned and this sets the stage for a rally to test resistance at $1,400/oz. Geopolitical risk from the Middle East, both Iraq, Iran and Israel, continues to be under appreciated. The price rise could be a delayed reaction to deterioration of the situation in Israel.

The Nikkei dipped late in trading in Asia and stock indices are in the red in Europe and this risk off sentiment could be another contributory factor to gold's gains today.

European stocks fell for a fifth day as shares of lenders declined to their lowest level this year. U.S. index futures also slid.

Banco Espirito Santo tumbled 16%, dragging the Portuguese benchmark PSI 20 Index (PSI20) down for its biggest seven-day drop since August 2011.

Palladium reached a new 13 year high after the longest run of gains since 2000.

As ever, it is impossible to pinpoint singular financial and economic breaking news or developments and point to them as the factor driving prices in the short term but it seems likely that the BES bond sell off and bond rout in Portugal may be creating jitters in European and wider markets.

There have been many bullish developments in the precious metal markets in recent weeks which have failed to ignite prices however the fundamentals appear to be re exerting themselves.

Gold is 11% higher this year as the Fed said it would continue ultra loose monetary policies and keep interest rates low for a “considerable time,” amid growing conflict in the Middle East and tension between Russia, China and the U.S. and western powers.

The Fed’s June meeting minutes released yesterday showed some officials expressed concern investors may be complacent about the economic outlook.  Something we have been warning of in recent weeks.

Silver Fix - Thomson Reuters and CME To Be ‘Crowned’ New Fixers
CME Group Inc.  and Thomson Reuters Corp  are expected to be ‘crowned’ the new operators of the London silver fix this week, a person with knowledge of the matter told the Wall Street Journal overnight.


Silver in U.S. Dollars - 5 Years

An announcement is expected Thursday or Friday to mark the end of a nearly-two-month-long hunt for a replacement to the benchmark, despite an 11th-hour attempt to muscle in on the action by the London Metal Exchange and Autilla Inc., a brokerage technology provider.

The results of a survey of members of the silver industry and of an independent consultation found broad support for the CME/Thomson Reuters proposal, according to two people with knowledge of the matter. Neither CME Group nor Thomson Reuters would comment.

CME/Thomson Reuters will have about a month to get their electronic system ready before the existing fix—a daily chat among a small group of banks—is set for a final time Aug. 14. The fix, a venerable 117-year-old City of London institution, provides a benchmark for mining companies to settle sales contracts and, more recently, to price such derivatives as exchange-traded funds, totaling billions of dollars each year.

We are now offering a price match guarantee and will match prices offered by bullion dealers internationally >> Bullion Coin And Bar Price Match Guarantee

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 07/10/2014 - 14:56 | 4944451 crazybob369
crazybob369's picture

Gold & silver surge 1 and 2% but the GDX is dropping like a rock. How's that even possible?

Thu, 07/10/2014 - 14:54 | 4944448 alexcojones
alexcojones's picture

Gaza is Israel's potential My Lai.

    "Furious, Thompson flew over the northeast corner of the village (My Lai) and spotted a group of about ten civilians, including children, running toward a makeshift bomb shelter. Pursuing them were soldiers from the 2nd Platoon, C Company. Realizing that the soldiers intended to murder the Vietnamese, Thompson landed his helicopter between them and the villagers. Thompson turned to Colburn and Andreotta and told them that if the Americans began shooting at the villagers or him, they should fire their M60 machine guns at the Americans:"Y'all cover me! If these bastards open up on me or these people, you open up on them. Promise me!" He then dismounted to confront the 2nd Platoon's leader, Stephen Brooks.

Hollywood would NEVER make a movie about Hugh Thompson. Hollywood , which I call CIA-West,  is guilty of war crimes by association.

Hugh Thompson, Jr.

 

Thu, 07/10/2014 - 14:44 | 4944414 alexcojones
alexcojones's picture

As you and I wonder if / when AU and AG will ever take off, a bunch of guys on the Gaza border are about to undergo this.

I've met some former IDF who witnessed this sort of thing below and participated too. ALL for the Sociopaths In Power - the SIPs

Heroes of My Lai -
Thu, 07/10/2014 - 14:29 | 4944337 alexcojones
alexcojones's picture

Walkure, I appreciate your posts and POV.

However, the average Jewish man-in-the-street, here in the USA and in Israel, has about as much leverage, with the causes of the shitstorm caused by Their leaders and OUR Leaders, as you and I have.

It is the ten percent of scum who call the shot, the bastards who really have NO religion aside from Sociopathology, that make the decisions.

Yeah, the average soldier in the uniform should resist, but rarely happens here or there. Only small acts of resistance like Ron Ridenhour.

Wonder if fucking Hollywood will ever make a movie about Ron? Probably Not.

Because Hollywood is part of the problem, rarely part of the solution.

Ron Ridenhour - The Ridenhour Prizes Ronald Ridenhour -

 

Thu, 07/10/2014 - 17:26 | 4944996 walküre
walküre's picture

Citizens of Israel are sheeple too. Jewish sheeple for the most part but just sheeple nevertheless. TPTB has the ordinary Jew by the balls just like everyone else. There is no conspiracy among the ordinary Jewish population aside from Bat and Bar Mitzvahs maybe, but a vast majority of TPTB has Jewish origin and is very much observing (especially those that profess NOT to observe).

Tens of thousands of ordinary Jews were arrested, their wealth confiscated and then sent to labor camps where the weakest died either by systematically killing them or by lack of nutrition That could have been avoided but several European leaders and nations were not interested to lift a finger, to even as much as complain about it. Instead the "cleansing" was not only condoned by much of France, Italy, Spain and so on but the Nazis were assisted in their motivation to "round up Jews" everywhere. Wall Street which is dominated by a Jewish oligarchy with strong and powerful influence over all facets of American life and politics did nothing.

So there. That was then and much time has passed since. Arafat is long dead and Intifada stopped. Now Hamas is the boogeyman to allow TPTB control over ordinary Israelis and if Hamas is quiet, something is not working according to TPTB's plans.

The reason why there's no "support" for Hamas and no solidarity speaks volumes. Hamas is a patsy and the rest of the Arab world is not falling for Israels propaganda and games. Imagine Israel wasn't attacked by anyone. Just who would Israel's leadership condemn of violence?

The relationship between Israel and its "enemies" a.k.a. "terrorist" is coveniently symbiotic by nature.

Thu, 07/10/2014 - 14:21 | 4944303 SmittyinLA
SmittyinLA's picture

its over for israel, they burned every bridge built in the Western World with mass immigration, most of it hostile to Jews.(Thank you Jew invasionists) 

Mission accomplished 

Welcome to the global Caliphate you created, Israel, enjoy the toll.

 

PS no US military to the rescue, no speakey da english 

 

 

Thu, 07/10/2014 - 13:47 | 4944141 GrinandBearit
GrinandBearit's picture

If ZH stops posting these play-by-play micro moves, maybe PMs will truly breakout.

Thu, 07/10/2014 - 12:46 | 4943831 paddyirishman
paddyirishman's picture

Satans spawn the kikes are at it again

Thu, 07/10/2014 - 12:45 | 4943820 paddyirishman
paddyirishman's picture

satans span the kikes are at it again.

Thu, 07/10/2014 - 12:26 | 4943706 walküre
walküre's picture

Spot gold and silver on 07/21/14

$50,000 / oz AU

$1,000 / oz AG

Debts wiped out. Govt liabilities going bust.

Reset coming. Restarting the game on a global scale.

Thu, 07/10/2014 - 21:59 | 4945989 Ban KKiller
Ban KKiller's picture

I smoked a bowl too!

Thu, 07/10/2014 - 11:17 | 4943372 Latitude25
Latitude25's picture

If every crisis in Israel caused an increase in the price of gold we would already be at $200,000 per ounce.

Thu, 07/10/2014 - 10:16 | 4943096 Smiley
Smiley's picture

Ah, the precious charts so many obsess over:  Reminds me of the number towers at the roulette wheels in Vegas, giving people the illusion that they can divine the future of a system composed of random events.  False hope; you can always count on it to squeeze some extra percentages out of the sheep.

Thu, 07/10/2014 - 09:06 | 4942812 Frostfan1
Frostfan1's picture

I realize using the word Israel brings eyeballs and comments but seriously, since no one is backing Hamas this time around, why should gold go up for a conflict where world trade is unaffected?   Iran quiet, Saudi Arabia quiet, Egypt quiet, Turkey quiet, Iraq busy, Syria busy, Lebanon busy, Jordan busy.

 

Thu, 07/10/2014 - 13:03 | 4943942 blabam
blabam's picture

You forgot Ukraine.

Thu, 07/10/2014 - 09:04 | 4942804 alexcojones
alexcojones's picture

Hamas should cut this rocket crap.

WTF has that ever accomplished, except blow up in their effing faces.

Or get a lot of school kids killed as revenge.

Thu, 07/10/2014 - 12:33 | 4943742 walküre
walküre's picture

Hamas is doing exactly what it is supposed to do. Deliver the Gaza Strip to Israel on a golden platter. Give Israel their excuse to commit state sponsored terrorism and agression against the Palestinians in general. It's a genocide in the making.

Back to Hamas. Seems odd they give Israel every excuse in the book to use their "Dome" of protection, doesn't it?

How many US Senators are double US/Israel citizens? How many US Senators have ties to the MIC and the banks? Petro Dollar is threatened by Iran, Iraq, Russia, China and who the hell knows else. NOBODY outside the US wants to keep trading with shitty fucking FedZio paper.

Time is running out.

Thu, 07/10/2014 - 13:40 | 4944119 walküre
walküre's picture

@ZIO agents

 

....................../´¯/)
....................,/¯../
.................../..../
............./´¯/'...'/´¯¯`·¸
........../'/.../..../......./¨¯\
........('(...´...´.... ¯~/'...')
.........\.................'...../
..........''...\.......... _.·´
............\..............(
..............\.............\...
Thu, 07/10/2014 - 10:23 | 4943129 Smiley
Smiley's picture

When infants want attention it is not uncommon for them to bang their heads violently against the wall or floor and scream bloody murder until an adult picks them up and begins coddling them.  They just want some tit and to have someone else wipe their snotty noses and shitty asses.

Thu, 07/10/2014 - 12:35 | 4943748 walküre
walküre's picture

You should know. Are you potty trained yet?

Thu, 07/10/2014 - 09:03 | 4942801 Suleyman
Suleyman's picture

You used the "as" word in the title, totally bloombergian.

Thu, 07/10/2014 - 14:32 | 4942784 alexcojones
alexcojones's picture

I find this quote darkly humorous, the type Tyler might write.

"Geopolitical risk continues to be under appreciated."

Never OVER appreciate geopolitical risk, whatever you do.

Once Gaza is invaded, then what?

Congress votes supplemental aid to Israel?

$50 billion in emergency aid sound about right?

Thu, 07/10/2014 - 08:41 | 4942757 paint it red ca...
paint it red call it hell's picture

I've got resistance plotted at 1348. I expect about a 70% chance going through 1392 then next stop, 1458.

I am not at all certain the lid cannot be kept on the PM's for awhile longer. It could be months before the previous high is broken. However, RGLD is certainly signalling mining sector strength.

Thu, 07/10/2014 - 09:23 | 4942895 swmnguy
swmnguy's picture

How do you account for rampant manipulation with TA?  Serious question.  Does it just "bake itself into the cake" over time?

Thu, 07/10/2014 - 13:03 | 4943947 paint it red ca...
paint it red call it hell's picture

Serious answer; Yes, manipulation is and has been a given from a historical perspective as best as i can determine. Markets historically have been exploited by those that can. All that changes is the content of the exploiter's tool box of manipulation. Its all about the time frame you are looking at. If your looking at weekly and monthly charts, the near term fluctuations/manipulations get averaged out. Its like pulling back in perspective to detect a lie from the truth when your manager's or teenager's (ex-wives) lips are moving. Frequent traders using technical analysis more frequent than a daily chart are the most vulnerable to manipulative algorithms, at least in my estimation. In addition there is a reason math wonks are employed to develop those algorithms. They, the pros, are in large part looking at the same data we all get price, time, volume and change and use math wonks to decode or amplify indicator patterns for comparison in all time frames. Massaging those inputs mathematically to magnify chart nuance, then comparing several magnified indicators generated in each of several time frames is certainly part of machine based trading. (i.e. if their MACD calculation trigger lines signal 2 bars ahead of a traditional MACD calculation whats that worth? likely nothing by itself.) By that logic, if the machines are looking at historical data then they too are using it to recognize patterns EARLY which in itself generates pattern fulfillment.  I expect there most certainly is other information available to professionals that I as a novice cannot even suspect exists much less access for my own use. So I do not concern myself with the unattainable. I concentrate on what I do have available using it in appropriate time frames, and conditions while trying to be disciplined.

I don't think much has changed in chart analysis generally in 50 years, but I consider myself a novice. What do I know? Charts are representative of the historical machinations of time and sales. Only a good guess on what comes next can be generated by studying historical data, but its not the data that one is really interested in. It is the patterns that can be extracted from the past that the data reveals. As to HFT, I can only speculate but it seems to me they are using it in whipsawing one another's machines for pennies. Many, many pennies as their execution costs are fixed.

With all that said there is one more qualifier. Markets go dead and dead they can stay, not to be expected to move by looking at the charts, deciphering fundamentals or wishing your favorite investment would give you just a taste of profit. When the professionals do move into a sector with intent, they take positions (long, short or both) over time,  slowly detected (longer term charts) and sometimes using exotic instruments with purpose. Human motivations, emotions and responses are no mystery to market professionals when they intend to move a sector which they are positioned in. Big sector moves don't just happen. If it is an "Operation" there will be plenty of technicals signalling it, at times even waving a green flag for the dumb money to move in. At first reluctantly then enthusiastically they come buying into exhaustion then dumping into the inevitable pullbacks.The pros get fat and if the unexpected is coming, they will know it first...

As a novice trader (i consider anyone, including myself, that has not worked as a professional or is without professional connections a novice) you have to remember your a flea on a dog's back You don't get to chase the stick, chew the bone or lick your balls. If your lucky and patient, you get an occasional drink of blood while trying not to get scratched off. But, and this is a big BUT, if you can recognize and position yourself with decent, familiar indicators used in several effective time frames and keep discipline, handsome profits can be made during a professional "Operation". In example the ENRON debacle, when the energy companies were shorted beyond all reasonable expectations then whipsawed back up. Had I known what I was doing during those few months instead of just being mostly long and feeling occasionally clever, my risk sensitivity would be very different today.

One Advice it took a long time, lots of pain and patience to learn, "flat is a legitimate position".

Thu, 07/10/2014 - 08:16 | 4942701 AdvancingTime
AdvancingTime's picture

As Israel has mobilized for a possible ground invasion of the Gaza Strip and militants extend their rocket barrage we see another example of an ugly cycle. The catalyst for war has not been diminished as many people have hoped it would once the world matured.

National pride, political agendas, religious and ethnic hatreds are some of the biggest roadblocks to world peace. Often we seem to forget as we look back to World War II and past a dozen "lesser Conflicts" peace has been the exception rather then the rule for hundreds and thousands of years.

The true reality is that across the world few mothers want to see their children killed and most farmers want to be left along to raise their crops and earn a living. More on the subject of war as a solution to conflict in the article below.

http://brucewilds.blogspot.com/2014/05/war-and-what-is-it-good-for.html

 

Thu, 07/10/2014 - 09:14 | 4942842 MeMadMax
MeMadMax's picture

The solution would be to hand out nukes to EVERYONE, and make them the bomb style that are too big to be launched with a missile or stashed easily in a truck(the WW2 style "big boys")...

 

Problem solved.

Thu, 07/10/2014 - 08:06 | 4942684 Ban KKiller
Ban KKiller's picture

Won't bloomberg..ha ha, want part of that fixing pie?

Thu, 07/10/2014 - 08:04 | 4942677 Jack Sheet
Jack Sheet's picture

Your technical analysis blather is completely useless because it is after the fact.
Present your projection of the Au and Ag prices for the next 3 months based on TA. Then, in mid September 2014, show us charts of your prediction overlaid with the actual price data.

Thu, 07/10/2014 - 11:30 | 4943440 Debeachesand Je...
Debeachesand Jerseyshores's picture

Does TA mean "Tits and Ass" ??

Thu, 07/10/2014 - 12:04 | 4943604 Jack Sheet
Jack Sheet's picture

It might just as well for the purposes of this article. Otherwise, "technical analysis" or chart voodoo.

Thu, 07/10/2014 - 08:01 | 4942673 kurt
kurt's picture

So, If some guy says you didn't pay him the bitcoins you promised to pay him, and you did everything to pay him correctly, how do you resolve the dispute? What if he wants cash now and is threatening to punch you in the face? How do you provide the "paper trail" that a judge would understand? Where is your receipt for the goods or service paid for and how do you prove that YOUR money wound up in his wallet?

Oh wait this is not a bitcoin faq?

How 'bout that gold and stuff.

Thu, 07/10/2014 - 09:10 | 4942822 philipat
philipat's picture

So let me see if I get this? The London market, which is a physical market, is now going to be priced off CME paper Silver? Isn't that a smaller paper tail wagging a larger physical dog??

Thu, 07/10/2014 - 09:05 | 4942807 Abrick
Abrick's picture

Always swing first.

Thu, 07/10/2014 - 10:25 | 4943137 Mi Naem
Mi Naem's picture

And hit a throat, or at least an eyeball. 

Do NOT follow this link or you will be banned from the site!