Gold and Silver Outlook 10-03-2014

Gold fans I know don’t like it, but the yellow metal finally hit the target I was expecting it to take out breaking the $1,200 round number resistance and at the same time the 2013 closing low of $1,192 (according to Kitco historical prices). Gold closed at $1,191.70. These lows have not been seen since February of 2010.

Silver took it on the chin today too closing below the $17 resistance settling in just below at $16.96 after falling to $16.57 earlier in European trading. Gold, silver and the mining stocks represented by GDX as you can see by the charts below all have a score of -100 which is not indicative of a buying opportunity. I imagine there are a few who hold gold mining stocks that are quite worried right now. I would be too if I was holding them.

I expect some continued selling in Asia come Sunday afternoon as stops are hit with the break of the low in the U.S. today and come Monday morning when the precious metals market open here, we could see a lower open. There is not much that will convince me that we’ll all of a sudden pop higher on Monday, however this low of $1,190 is a good spot that we could bounce higher which is a price level to watch and see if it holds.

 

 

 

 

 

 

 

 

 

 

 

Rising Interest Rates?

The culprit, or what I view as an excuse by market makers to continue their goals of smacking down gold and silver prices, was the better than expected jobs report today. This pushed the stock market higher and everyone in la la land is talking about higher interest rates like this Bloomberg article; Gold Close to Erasing This Year’s Gains on Rising Rates.

But what is the reality here? Does this chart of the 10 year treasury look like rising rates to you? The answer is simply no! The 10 year is currently at 2.44%, One has to separate what they hear from the financial media and look at what’s really going on with the data.