Jump to content


  • Content Count

  • Joined

  • Last visited

Everything posted by fltraz22

  1. Just short but valuable, the metal review will tell us how the market works this week. The Metals Review For the week of June 20th, 2011 Precious metals bounced up last week as fear came back into the market with gold shooting higher from $1,520 to $1,540 and silver rallying to above $36. Even as the USD increases the precious metals appear unaffected by this as traders dip back in to the market here with a falling S&P. As I see it, gold still has great resistance at $1,555 and silver at $38 to $40. Copper is down again below $4.10 as this market has been having a tough time recently and looks to head lower. I believe a $3 handle will be seen very soon as the equity markets still look to come off. Read more at http://www.pitguru.com/Article.aspx?cmd=archive&day=20&month=6&year=2011
  2. Just short, the metal review on metals market as usual will share with you necessary information for your trading week. The Metals Review For the week of June 13th, 2011 Precious metals falling at the end of last week with Gold dropping $16 in a matter of minutes as the top still looks to have set in this market with the downtrend continuing. Silver also looking to head lower as this market fell to below $36 last week. I look for continued weakness in the metals as the USD made a very nice move to the upside in the beginning of last week. I think Gold needs to break the $1,520 mark to head lower which I believe will happen early in the week. Copper had a losing week as well following the equity markets lower with the DOW below 12k now as the industrial metal looks to head to $4.00. This market had a tough time holding above the $4.15 mark and looks to sell off this week. I look for $3.90-$3.85 to have good support as this low held last time. To support more for your business, other reviews on financial, energy, soft and grains will help: http://www.pitguru.com/Article.aspx?cmd=archive&day=13&month=6&year=2011
  3. You have got accustomed to the metal reviews weekly shared by Pitguru Daniel Cronin. This week also, we are going to be back metal market and learn notable points guiding our trading. The Metals Review For the week of June 6th, 2011 Precious metals stayed relatively steady last week with gold taking a dip to $1,520 but rallying back up to $1,545 and Silver falling to $36 but getting right back to $37. The Euro/USD remains strong here as this has rallied 6 cents in the last two weeks alone helping boost the appeal for these metals. I think Gold needs to break out of $1,575 to have any shot at more upside and Silver needs to get above $40 again. Copper has also had a stagnant week rallying above $4.20 but coming back down to earth at the support of $4.10. I believe this market will go as fast as the equities take it and the recent sell off suggest there might be more room for downside to break $4.10 in this market. The Dow has lost 500 points the last week and Copper has gotten pulled down with it. Learn more markets at http://www.pitguru.com/Article.aspx?cmd=archive&day=6&month=6&year=2011
  4. As usual, when new week starts, Pitguru Daniel Cronin keeps doing the job of analyzing information around Gold, Silver and Copper and shares with us. Just learn to know how these markets are going to be traded at and plan your business! The Metals Review For the week of May 23rd, 2011 Precious metals had a bit of a bumpy ride last week with Gold unexpectedly dropping to $1,470 only to recover some $40 to trade at $1,510 as this market still keeps on moving higher. Silver held steady at $35 per ounce after trying to get below $32 once again. I think the news about the European debt crisis coming back into the fold will surely hurt the metals here as the USD will gain great momentum this week. I will look for these metals to sell off in the beginning of the week on a strong USD. I say Silver will test $32 again. Copper has reached $4.13 on the COMEX where it is met with great resistance as prior support becomes resistance now. I will look for Copper to retrace back to below $4.00 after the news of the Greek bond issue. I feel this market will surely be sold on this news. By the way, if you would like to know how crude oil, gasoline, financial, sugar, coffee, and other related markets will be traded, just check at http://pitguru.com/Article.aspx?cmd=archive&day=23&month=5&year=2011
  5. When you are a futures trader, among of the trading futures techniques that you need to learn is how to keep track with the market so that you can make right on-time decisions. Back to the metal market, Pitguru Daniel Cronin will help you do this task. The Metals Review For the week of May 16th, 2011 Precious metals kept on liquidating this last week with Gold settling below $1,500 and Silver lower to $34 as the USD strengthened against other major currencies. The Euro/USD is now trading at $1.41 which is down considerably from three weeks ago from a high of $1.4925 as all commodities have been falling. The Silver trade looks to be over for now with the price falling from $49 to $32 as that is a huge decline. I believe Silver will hover around the $30 mark now as it tries to find some support. I think Gold has support at the $1,475 level so watch this mark carefully as it is almost near there already at $1,488. Copper held the $3.85-$3.90 support and is now up to $4.00. I will look for this market to still trade between $3.85 and $4.05 until it builds another solid base. For more information on Crude oil, Gasoline, Cotton, Finance market and check for the Silver chart at: http://www.pitguru.com/Article.aspx?cmd=archive&day=16&month=5&year=2011
  6. It will not take you much time to check for the metal market review this week, but will be valuable for your whole trading week. Let's see what Pitguru Daniel Cronin has analyzed for you! The Metals Review For the week of May 9th, 2011 Precious metals finally got liquidated after the huge run they had with Gold trading below $1,500 and Silver falling to $36 from $48 an ounce just in four days alone. This market will likely have a dead cat bounce this week and I think one could see Gold trading back above $1500 and Silver above $39. This market is very volatile right now so options are the way to go in my opinion. Copper fell very hard from $4.20, below the support of $4.10 to $3.92. I believe this too will see a pop back above $4.00 and there looks to be some resistance at $4.05/$4.06 now. By the way, spend some time more to learn around other futures market reviews on financial, energy, soft and grain.
  7. There will be hot news around Osama Bin Laden's dead that brings energy to most of us and may cause changes in trading life. Let's share the feelings and don't forget to learn the metal market with Pitguru Daniel Cronin to plan your business in the next few days! You can learn more around other futures markets to to active in everything you do. The Metals Review For the week of May 2nd, 2011 Precious metals are coming off significantly over the weekend thanks to US forces capture and kill of Osama Bin Laden. This news came out late last night and is huge. Silver dropped $5 in a matter of minutes and Gold dropped $30 to $1540. Silver now trading $44 and had a low of $42 last night. Some incredible moves as this great news is upon us that Bin Laden is dead. I believe the market will now see lower prices for these metals as the war on terror has the potential to slowly come to an end. I will look for Gold to again test $1540 this week with Silver moving to test $40.
  8. Like usual, Pitguru Daniel Cronin would like to share with us the metal review for the week. By the way, you can check for other futures market reviews to learn more about how other interactive markets are working to help guide your work. The Metals Review For the week of April 25th, 2011 Precious metals again outdoing the rest of the field, scorching everyone in their path as Gold hits the $1,500 number. This market is already up another $17 to start the week at $1,517. Silver is even hotter as this market has risen from $40 to $49 where it is today in a matter of days as many shorts got burnt to a crisp and had to liquidate massive positions last week. With the rally in the Euro/USD it looks as if these metals will continue to head higher. I feel Silver will no doubt break $50 which could easily happen in the early part of the week and Gold $1,525. I see no chance of stopping these metals anytime soon from higher highs right now. Copper again bouncing up from $4.20 to $4.40 where it sits right now. I am watching for a trade above $4.50 as I feel May copper is vulnerable up there and has been sold each of the last 3 times up that way.
  9. Be back the futures market to check out metal review by Pitguru Daniel Cronin to see how Gold, Silver and Copper market keep working. The Metals Review For the week of April 18th, 2011 Precious metals had another great week as both Gold and Silver continued to make new highs with Gold now over the $1,480 mark and Silver above $43. Very interesting to start the week as well with these metals only down fractionally when the Euro/USD was getting hit down (stronger USD) below $1.4260. The question really remains, how long can these metals sustain their current growth? It really doesn't look to me like anything is going to change soon so look for Gold to have great support around $1,450 as it makes its way to the illustrious $1,500 level. Silver bugs have been talking for weeks now of a straight ride to $50 and this looks pretty much par for the course in my opinion. Copper once again coming off of a good rally last week as prices continue to head south as the equity markets begin to slide. I think the base metal has great support at $4.10 and I believe this is where it is headed next as all of the steam to the upside has been lifted from this market and is getting exhausted right now to the downside. **chart courtesy Gecko Software’s Track n’ Trade Pro Past performance is not necessarily indicative of future results.
  10. The Metals Review For the week of April 11th, 2011 Precious metals once again had another stellar week this time breaking the huge resistance in Gold at $1,450 and rallying to new heights at $1,470. $1,475 is my next target here so look for profit taking to occur around this area. Silver reached its target of $40 rather quickly last week and now trades at $40.35 still looking to rally higher. This was caused by the USDs collapse against other major currencies with the Euro/USD now trading at $1.44. Look for the precious metals to try and take some kind of profit this week but $1,500 Gold too far away. Copper rallied along with the equities and other metals and now stands at $4.50. Remember that the price is getting closer and closer to the $4.55-$4.65 resistance are so look for this market to hold steady up here. Prices have rallied 30 cents in a week and a half. You have just checked the analysis focused on metal markets by Pitguru Daniel Cronin. Once you are trader in futures trading platform or any related ones, such the short review can give you valuable information for your trading since the markets are always changeable. **Chart courtesy Gecko Software’s Track n’ Trade Pro Past performance is not necessarily indicative of future results.
  11. How does the metal market continue working this week? Ask Pitguru Daniel Cronin, our expert will help us understand of what will happen around this market and futures trading floor! The Metals Review For the week of April 4th, 2011 Precious metals had a mixed week last week trying to trade to new heights. The gold market hit at $1,449 before losing its footing and sliding back to $1,415 only to rally back up to $1,440 where the price sits right now. The way I see it, dips can be bought in this market as the chart looks like it might realize higher highs and higher low. To me silver is the strongest of the metals and is actually making new highs here breaking through $38 as this price has been on fire since last year, rallying more than 100%. I think all metals will continue to rally as the USD gets weaker against other major currencies as the Euro/USD has flown by $1.42 and is on its way to the $1.43 handle. Look for Gold to make new highs again this week. Copper is still under the liquidation mode and even though the equity markets have rallied Copper has still fallen below $4.25. I like this base metal below $4.20 as a buy with great support at $4.10
  12. You are going to have a short review on metal market this week by Pitguru Daniel Cronin. Once you care about this market, just learn the market and discuss together to find out a good plan guiding your way in the new week! The Metals Review For the week of March 28th, 2011 Precious metals had a peculiar week. Gold rallied to new heights over $1,445 but had no real conviction in keeping the price above there and has subsequently pulled back $25 right now to $1,422. Silver had also rallied above $37 and was looking poised to continue its run but it too faded a bit. Like Oil and the energies, I believe this market will try and sell back down to support of $1,400 so look for a potential liquidation to start the week as prices will drift lower as the USD strengthens against other major currencies. Copper looks to be ready to head back down to $4.30 as well so look for this base metal to react the same with equities, starting the week potentially lower as well. I hope the information shared will be useful for your business. Besides metal review, you can have a look at other futures market reviews to have a full view of what will be going on in the futures trading floor. ***chart courtesy Gecko Software’s Track n’ Trade Pro Past performance is not necessarily indicative of future results.
  13. Not only Japan but the world is facing with the pain that disaster brings to human life. We all deeply want to share things with the Japanese and hope that everything will be ok soon. Back to the metal trading floor, we need to know how the precious metals working this week to plan our work. Let's see what Pitguru Daniel Cronin noted for us! The Metals Review For the week of March 14th, 2011 Precious metals bounced off support levels last week to trade higher as the USD lost ground against other major currencies with the flight to safety play in effect as a huge earthquake rocked Japan and the tensions in the Middle East continue. Gold dipped into the low $1,400's where it was met with good support and now trades higher to $1,430. This looks like another run at the highs are in effect. Keep an eye on the Euro/USD which is just trading a shade under $1.40. Copper has had a big liquidation last week from $4.50 to $4.10 so look for the $4.10-$4.00 mark to show good support as shorts take profit from the recent decline. The equity markets have been on shaky ground these last few weeks so as these go down I think Copper will follow suit. By the way, check out the other futures market reviews to have a full understanding of interactive markets for help!
  14. The Metals Review For the week of March 7th, 2011 Another week of rallying energy prices continued as tension in the Middle East, a falling dollar, and rising Greek debt issues fueled the fire under crude prices. Fighting increased between Libyan rebels and troops loyal to Muammar Qaddafi, reducing the nation’s crude-oil output by as much as 1 million barrels a day. The contango in the wti vs brent contract is still in effect but rallying here as the April arb now trades at -$11.00. WTI spreads in the front still higher as traders gobble up the front month contracts here with May/June now trading -50 and the June/Dec looking to go backwardated. With the US dollar falling and still fighting in Libya this Crude market will likely continue to rise and $110 is next on the horizon. Natural gas continues to slump now below $3.80 in the April contract as continued supply increases sell this market off. If this market gets below $3.70 which is great support then it could be headed for lower lows here on the NYMEX, even with every other energy moving higher. That's what we can learn about the crude oil and natural gas this week. I hope that the information shared by Pitguru Daniel Cronin will help guide your decision on your trading during coming days. By the way, whenever you have time, other futures market reviews can effectively support your trading.
  15. According to Daniel Cronin's analysis, precious metals had a similar week to the energies as prices were very volatile, rallying in the early part of the week with silver reaching over $35 an ounce. Gold has yet to break the $1,430 quadruple top now. This has tested this level several times now without breaking. I believe this will still be great resistance for gold so keep watching that $1430 level. A very sharp breakout to the upside is likely to occur if the yellow metal gets above $1435.
  16. New week is coming. It's time for us to be back to with Pitguru Daniel Cronin's review on metals market. Now, let's see what's new and plan your biz! The Metals Review For the week of February 14th, 2011 Precious metals had a nice week last week moving higher on the Egyptian departure of Mubarak as Gold rallied to just under $1,370 before giving back some gains to $1,360. Silver still looks to be the way to play here as it reached over $30 last week before it too gave back some gains. I like these metals for the long term and also the short term in the next few weeks so I look for opportunities on any dip here. Copper has repelled from the $4.65 high and is now below $4.60 as this market has seen a bit of profit taking. I do not like the Copper prices up here and would be a seller as prices are still too high I believe. I'm looking ore for a $4.20- $4.30 area to get back in as I believe it is overbought up at these levels.
  17. Just about five minutes to scan through and note down the necessary information on metal market with the Pitguru Daniel Cronin's analysis for your whole trading week! Ready? The Metals Review For the week of February 7th, 2011 Precious metals had a nice rally last week and look to continue this week as gold is above $1,350 and looking healthy here. What really is strong right now is the silver price which rallied above $29 and has outperformed gold this year. I would look to take profits ahead of the $30 level as there is good resistance there. Copper having yet another huge week rallying to new heights above $4.60 per lb. I believe there will be some resistance up between $4.65 and $4.75 so look to take some profit in this mark as well as the slow stochs and RSI have both risen above the 80 level indicating an overbought market.
  18. Be back to metals market to learn how Gold, Silver and Copper work. It will not take much of your time to go around the market to learn valuable news for your trading. Let's see what Pitguru Daniel Cronin has noted for us! The Metals Review For the week of January 24th, 2011 The precious metals markets have seen shades of breaking down the last week as Gold and Silver got sold off, breaking some key short term support levels. Gold is trading $1,345 and broke the $1,370 on the downside and Silver trades $27.79 after slipping below $29.50. I believe these markets are looking to liquidate further and Gold has huge support at $1,320 so watch this level very carefully. I like this market in the long run as Gold has been positive for 10 straight years but this is just a bit of profit taking and if Gold gets below $1,320 it could see $1,270. Copper came off a bit last week but still very healthy above $4.25 as this is the best performing market this year and for the past 2 years as prices have rallied from $1.25 in 2008 all the way up to $4.50 where there is huge resistance right now. Copper looks to stay in the $4.00 to $4.50 range but I would be a seller on any rally here as I believe the $4.50 number is just too powerful to get through right now.
  19. Narrow the topic at metal market, today I would like to be with you guys to discuss the topic of Metal and Money through The Bullion Report. Interested in? Just join! Metals as Money It has been about a month now since the World Bank chief found a way to work gold into his comments for the Financial Times. His words, no matter how they were originally directed, added to the revival of mainstream discussions over the gold standard. Central banks are likely nowhere near that kind of conclusion, but the strong feelings some people have towards precious metals as currency are likely not taking a back seat any time soon. What is it about gold and silver that beckons such debate in the first place? Past performance is not indicative of future results. ***chart courtesy Gecko Softwareís Track ní Trade Pro The first answer to that question is usually the idea that gold and silver occur in such rarity that there will always be an intrinsic demand for that which is harder to come by. This is the supply and demand argument at its root. Supply includes the visible and quantifiable amount of precious metals that is held by investors and banks. It also includes identifiable jewelry and industrial applications. The potential underground resources in areas where metals are mined are also observed as part of the overall estimated supply. These "yet-to-be-mined" metals present a bit of a challenge. After all, there are significant input costs related to mining, but the general picture of potential metals for investment and manufacture include these estimated values as well. If demand keeps ratcheting up over time, this finite value of precious metals has to be spread among more participants. This would essentially lead to a higher price if the number of buyers outpaces the number of sellers. On that demand side, the answer to using metals as money can be a little more esoteric. To the critic, gold has limited desirability. Some infamous investors have even gone on record making statements that point out higher values to be found in farmland or oil. They suggest that gold and silver are just metal. They have no function beyond that which imagination imbues in them. However, therein lies the answer. Apparently, there remains a strong drive to possess gold and silver. Gold may not represent a food value or potential energy source. The fans of bullion point out things that are possible with gold - and even silver to certain extent - that are not found in other financial instruments. Gold does not easily tarnish or rot away. It doesn't change with the seasons or get consumed while performing its function. Precious metals have history. They have been used as a store of wealth for millennia. There is an inherent difficulty in manipulating or devaluing precious metals, unlike currencies. To the fan of a gold or bimetal standard, it appears easier for a central bank to change policies in the short-term to print more money. Making more gold or silver would more often involve an investment in mining or a gold discovery the scope of which might need to match the Comstock Lode or other significant ore deposit. Again, critics of gold may suggest that the instability created by central bank sales shows an inherent weakness in gold values. However, the likelihood of sales of such magnitude from banks might be eroded by the requirement to back paper currencies with actual, physical gold. Gold and silver were used as exchange mediums for centuries. They held places of esteem in many civilizations. Gold and silver coins and jewelry are easy to mold into convenient sizes to transport. When agreed upon values exist, precious metals represent something familiar to most modern societies. Unlike other financial vehicles, there are very few inherent weaknesses to precious metals like there are for a nation's currency. They do not rely on performance figures or economic policies. They are just physical gold or silver. Even though attempts have been made historically to alloy or plate coins to pass them off as bullion for illicit gain, it is harder than it sounds to manipulate an investment that way. On the other hand, even rogue comments by central bank members can have significant impact - even temporarily - on overall markets.
  20. We are going to have a discussion with The Bullion Report again. The topic is also around the Gold market - One of the most important market which gets much concern from people. Do you want to join and learn news? Gold Reserves Central banks have long held gold as part of their reserves, and I have explored this topic before. This stock of bullion is an interesting component of the demand side for precious metals. The Bank of Tunisia’s gold reserves were recently pilfered by the first lady, bringing central bank gold to the headlines again. The news focus is on the Tunisian President’s wife and her 1.5 tons of gold bars, but there are legitimate movements in and out of central bank reserves that are worth revisiting. Past performance is not indicative of future results. ***chart courtesy Gecko Software In my last report on central bank gold reserves, I looked at the basic ebb and flow and why it matters to the gold markets. One of the places to look for statistics on gold reserves is the World Gold Council (WGC) website. They compile reports based on the latest information from the International Monetary Fund (IMF). It is important to note that this data is based on the publicly reported holdings of certain countries. Not all countries known to hold gold actually make a public reporting of what they have. Within recent data on world gold holdings, you can see that overall the gold held by banks declined in the last decade. There was a genuine sloughing of gold reserves, part of which was performed under those infamous gold agreements. The decline appears to have halted in the wake of the credit crisis and the fallout from the global economic tailspin. Past performance is not indicative of future results. Data courtesy of World Gold Council. This contrasts the sentiment that was at the forefront about ten years ago. At that time, there was an apparently popular view that gold would not hold a place in the financial system. Precious metal assets were seen as a financial dead-end, a place where money could get tied up versus other assets which could provide a possible return. The Australian central bank was among the net sellers of gold reserves at the end of the 20th century. They sold 167 tons of their gold, believing that mining reserves could be used if a need for gold appeared. Economic analysts suggest that this move cost the bank around $5 billion. However, bank advisors suggest that the move was prudent, and that gold is only held as a guard against international financial crises. An article about this sale suggests that for some observers, recent economic crises are being managed without gold. (1) This hasn’t dampened all central bank demand for gold. Among the countries being closely watched for gold acquisitions, China stands out as it moves slowly up to the front of the pack in overall holdings. Right now, China sits just below the US, Germany, France, and Italy with the fifth largest pile of gold bullion. Much of the 454 ton gain in their holdings was picked up over a span of six years, but only recently announced. This fuels some suspicions that they are still quietly adding gold and silver to their reserves. Since China’s development is often cited as a reason for climbing commodity demand, it is only natural to take a look at their bank’s gold holdings as a possible place for growing bullion appetites. This contrasts the apparent lack of gold additions to US holdings. Past performance is not indicative of future results. Data courtesy of World Gold Council China is not alone in public scrutiny of their central bank’s interest in adding to reserves. Russia and India are among the notable buyers of gold from recent sales under the gold agreement. Russia also happens to be home to a significant source of platinum mining. India is another developing nation that is used as an example of growing demand for various commodities. Their gold holdings have blossomed and were recently valued at over $22 billion. Past performance is not indicative of future results. Data courtesy of World Gold Council
  21. fltraz22

    Dow vs Gold View

    You are not find The Bullion Report strange any more. This week, be back the Gold bullion market, The Bullion Report will share with you some information about “Dow vs Gold” which will helps you in your trading. Dow vs Gold Plenty of indicators try to bring the world of gold to an investor’s doorstep, and in a bullish environment they all seem to make headlines. The Dow/Gold ratio is one of those headline-making numbers that warrants a closer look. What exactly is this ratio and what is everyone watching for? The Dow to Gold ratio is a simple expression of how much gold it takes to buy one share of the Dow. It shows the ratio of the Dow price to Gold Price. For some analysts this is a good indicator of the strength in equities. It is also seen as a representation of a potentially cyclical battle between paper money and precious metals as money. If gold is seen as an unbiased form of money, then the Dow/Gold ratio is viewed as a representation of the “real” value of equities. The really interesting thing about the Dow/Gold ratio becomes apparent when you look at a long term chart of the relationship. The key moments in market history are marked by a climb in the Dow/Gold ratio and then a tumble afterwards. The boom of the twenties brought a 20:1 ratio that collapsed during the Great Depression. Following the two World Wars, the ratio saw another gradual expansion that actually peaked above 20:1. This was brought low again until the 1980s saw the foothold of another climb higher. In the most recent bullish market environment, this ratio was above 40:1. That meant that it would take 40 ounces of gold to purchase a share of the Dow. This peak could be viewed as a good indicator of just how out of whack things could have been during the dot-com bubble. Following the historic pop, the ratio contracted again. It has been flagging ever since. Right now the ratio is just above 8:1, with a climate of fear-induced interest in gold purchases and a great deal of uncertainty in other investments. So what can be gleaned from this current Dow to Gold price ratio? For some analysts, the really fascinating moments are when the Dow is rising but the ratio is dropping. To them, this signals a “false” value for equities. They cite the primary motivating factor as the inflation spurred by free running of the printing presses. This might stimulate the markets short term, easing credit issues and trying to inspire investors, but the long term it might be a risk for inflation. It is seen as a false flag for investment in stocks, an overall weakness that is illustrated by the smaller ratio despite higher stock prices. So what is the possible outcome? The nature of this ratio is that it has historically bottomed out somewhere well below where it currently sits. This means that there are a few things that may happen to bring about a 1:1 situation, including the following scenarios: - The price of gold could rise while the Dow falls - The price of equities can drop AND the price of gold could drop, but the Dow would plummet faster - The price of gold and the Dow could gain, but gold could add gains much faster So in this current environment, that could mean investment demand for gold and a gain in gold prices. With the twin threats of economic uncertainty and risk of inflation as the dollar is devalued, it seems likely that gold will gain faster than the Dow, shrinking the Dow/Gold ratio.
  22. New week comes, to have a good start we just have a look at the metal review Pitguru Daniel Cronin before going around others futures markets to have a full view to plan trading. The Metals Review For the week of January 10th, 2011 Precious metals dropped very early to start the week as many took profits above $1,400 in Gold and $30 in Silver. Gold came down to the 200 day moving average at $1,365 and have been consolidating at this level for the past few days now. This market can go either way here but a good play could be to look at straddles as I believe prices will either move sharply higher or sharply lower from this level. The next support level on the downside in gold is $1,320. Copper also came off of its yearly high as the base metal traded down to $4.20 after rallying to $4.50 the previous week. A lot of profit taking occurred but this week will be a week to value buy on the dip so look at long opportunities in this base metal here and even around $4.00 if it can get there. Copper needed some liquidation and I believe this is a great opportunity to buy.
  23. We are going to have the first talk around the metal market in 2011. Together with The Bullion Report, we will go around the market to collect the information and plan our investment. Digging a Hole The new trading year brought renewed enthusiasm for global recovery. It also delivered a fresh round of selling in precious metals. Optimistic reports on manufacturing as well as positive bank news helped things along. There is no doubt that this inspires a new trajectory towards recovery, but are investors out of the gate prematurely? Remember where it all started A simplified view of the events of the last few years would start with a housing bubble. Prices got higher and higher, more homes were built, people took mortgages they couldn’t afford, and eventually things fell apart. The ripple effect was incredible. Is all of that really behind us? It doesn’t seem to be. Home sales and construction can post better results, but they are coming off of some of the deepest plunges seen in years. Those deep plunges sparked layoffs and job losses of a magnitude that begged comparison with the Great Depression. Areas with the greatest employment issues included construction and mortgages, only partially mended with a rise in commercial building. Can those extra opportunities that came during the housing boom ever truly be recovered? The key to any spark of recovery has rested on clearing the books of the bad debt and trying to kick start economies. Banks and officials have tried to rework faulty mortgages and maneuver around bad debt. Some credit issues and foreclosures remain. There might still be troubles out there, waiting to come home to roost. Employment has been among the biggest issues to contend with. The first reading of the job situation for 2011 is an important highlight. However, temporary jobs from the holidays and the potential for continuing underemployment for many can easily cloud the picture. There have been a few companies looking to add employees, but the job hunt still appears to be long and fierce for many out-of-work people. Part of the promise for stimulus since the beginning of the crisis has been job creation. The growth in the job sector just seems to be lagging a little further behind what is comfortable. Benefits may have been extended for some claimants, but those actual dollar amounts being paid to unemployed people might not be at a level which sustains lifestyle and spending habits. The fallout from that had an obvious impact on the retail sector. This sector has just wrapped up its annual holiday period, and the level of consumer spending during the season will be key this month. Did consumers feel confident enough to ante up for more presents than in years past or were they frugal again? Were they taking advantage of slashed prices and adding impulse items to their carts? Were they throwing caution to the wind on hopes that there really is a recovery? Improved buying habits might be enough to stimulate another move higher, at least until something forces people to tighten their belts again. A catalyst for that might not be far enough in the economic review. Starting a fresh, new year didn’t diminish the very real concerns that global money supply will eventually create an inflation situation. Very large sums of cash have been printed and doled out in an effort to “stimulate” the economies of Western countries. This large supply of money has been cited by media from many places, including the World Gold Council, as a potential catalyst for “future inflation pressures.” The quantitative easing programs from the Federal Reserve ignited another discourse on that subject. The latest meeting minutes from the Fed suggests little concern over inflation and a focus on maintaining low interest rates. This seems contrary to the global scene which appears to have plenty of inflation fears, certainly where food is concerned. Forecasts for higher energy prices have also lit up headlines. The more money is printed, and the more debt is accrued in an effort to try to repair the damage, the harder it might be to find solid ground. There is significant discomfort regarding the amount of printed money. Even global bank leaders came out to criticize QE2 when it was announced. How long can this kind of response be sustained?
  24. "Precious metals continued to rally last week and will likely do the same this week as Gold traded up to $1,420 as investors gobbled up the yellow metal in front of the big resistance number at $1,430. Gold has been making W shaped patterns in this market now and will likely continue to head higher as prices have hugged the 50 day moving average at $1,375 only to bounce off and trade higher. I think Gold will test $1,430 this week and eventually break the mold. Silver also trading higher and I believe this metal can break the $30.70 resistance area this market has seen at this level thus far. Copper had an unbelievable breakout above the $4.30 mark to trade up to $4.45 Friday and it feels like there is no stopping this market. It has now broken above 2007-2008 highs and looks like it is going to continue to move higher. I will look for a period of profit taking to try to get in on this market and to not chase. Somewhere around $4.35 to $4.30 would be a good entry level to me, if this can be attained." You have just reviewed the metal review of the first week of New Year analyzed by Pitguru Daniel Cronin. The information shared will help you plan your business in the new week. By the way, get daily update of silver prices, gold prices, copper prices and other futures prices for help! I hope that all of us will have a great trading week as a good signal for a whole successful year. Good luck!
  25. We don't have much time left staying with 2010. For the last report in 2010, if you care about Gold bullion or other interactive futures markets, we will together have a short review around metal trading with The Bullion Report and the decide what we should do next. Under Pressure Precious metals have made several fresh highs this year, capping off a performance that is often compared to the price runs seen in the early 1980s. Some analysts are looking for selling pressure as traders close their positions as the year ends, but others argue that any price dip will just bring more investors. Is there a potential for a strong sell-off in metals or an argument for bargain hunting? What motivates a sale in gold or silver? The easiest way to find a source of selling pressure for precious metals is to look at the things that are usually associated with a rise in prices: - A change in the US dollar - Changes from central banks - The outlook for inflation - Supply dynamics - Demand sources Gold price can be largely determined by the US dollar. They might not move step for step against each other, but a weaker dollar can prompt investment in gold. Likewise, a stronger dollar can cause some longs to flee. The sources of the weaker dollar include policy changes from the Federal Reserve and weak economic outlook for the United States. The latest quantitative easing program from the Federal Reserve sparked a lot of criticism and loss of faith in the monetary policies. This definitely led to a bolder outlook for gold prices. When the Fed purchasing of bonds ends – if it ends – the fallout would probably spark some significant selling in gold and silver. Watch for investors closing long positions following any news that the programs are ending. If there is no renewed stimulus effort through the first half of next year, it is likely that gold bugs will encounter some skepticism. At this point, it doesn’t seem like the greater threats to economic stability are behind us. There are still big obstacles to overcome in housing markets and employment. These will be the potential motivators for support of metals prices as well as continued efforts to maintain low interest rates. Speaking of interest rates, those are another source of ebb and flow in precious metals. Any hike in interest rates (or whispers of a Fed move to come off these low levels) would signal that the economy could be gaining a strong foothold. Even if recovery isn’t in full bloom, there could be a move made in 2011 to change things. Again, this could be a catalyst for sales. Inflation will be the big word, as it has been on any extra money printing. As it stands, the global money supply needs to see some trimming before all fears could be dispelled. Supply and demand-wise, there is little to prompt selling on mining news. Big deposits of gold and silver certainly caused instability in historic market prices. Modern era reserve statistics suggest that there are no huge discoveries waiting to destabilize things. Demand on the other hand has shown significant points of weakness that are worth being wary of. The big demand numbers to look at include ETFs and other investor interest. One of the big stories of 2010 was the surging demand for bullion investments. This demand growth had tapered by the third quarter, but didn’t drop off completely. Contraction of this kind of metals demand would probably bring out the sellers. As long as mint sales keep moving along and metals make headlines, it is probable that investors are still looking to add gold or silver or both to their repertoire. A wild card for any analysis for the new year is specific investor action. One of the largest price declines in each market relates to kinds of manipulation or attempts to add controls. The Hunt brothers decimated the silver markets and the price declines that followed their attempts to corner the market were epic. The recent accusations of market manipulation could provide similar disenchantment. In gold, the actions of central banks remain key. Those low prices from the 1990s were sparked by rumors of gold sales from central banks. The drop in prices was stemmed by the agreement to limit annual gold sales. That agreement doesn’t extend to all banks across the globe. With fresh highs in precious metals, there could be a selling opportunity for someone other than regular consumers. Any hint of large gold sales could signal a fire sale. However, speculation that banks across the globe are looking for alternatives to the US dollar in their holdings would probably be enough to stem any action of that caliber.