The Weekly Review  September 16 2011  

Greetings! 

 

This week we witnessed a global economic meltdown for the ages. Across the board markets fell like lead weights. Global equity markets, lower. Commodities across the board, lower. Precious metals across the board, lower. About the only markets to rise this week were the volatility index and the U.S. dollar. The number quoted is $3.4 trillion, this being the dollar value of losses in the equities markets. The GSC I index (24-commodity basket) traded to a nine-month low today.

 Although counter-intuitive, gold and the precious metals markets followed suit with this meltdown. According to knowledgeable sources gold remained the only source of liquidity for the global dollars needed for margin calls. With this flight to quality, it can only be a matter of time before capital flows back into gold and silver. 

It is my belief that we are experiencing a correction in the precious metals markets - yes, a deep correction, but a correction nonetheless. I would look for a bottom in the precious metals markets, if we have not seen it already, by the middle of next week.  

Wishing you as always good trading,
   

 gary@thegoldforecast.com 

On Skype gary.s.wagner  

Click link below to watch the weekend reports

    

Market Forecast

Gary S. Wagner

   

   

 As you know from my previous daily videos we have been looking for gold to continue its decline with an anticipated bottom around 1650. We based this number on two primary factors.  

 

The first of these was that a Fibonacci retracement of 61% of the rally witnessed since July would take gold to approximately 1650. A longer term retracement looking at the rise of gold from 2008 to present pegs a 23% retracement at 1638, which is dollars from the actual low today.  

 

The second factor influencing my belief that we would see the market trade to this area was the gap that was created seven weeks ago. This gap was in fact filled today.

 

I currently believe that as these variables have been met and the gap has been filled we are probably at or very close to the bottom of this retracement. The underlying impression I would like you to take from this is that we have just lived through a correction.  

 

This correction was probably a 9.0 on the Richter scale, but it was a correction and not a reversal of a bull market to a bear market. Do not not be surprised if fundamental driving factors resurface to push the market off of these lows next week.

 

  

  

In the worst one day drop since 1984, silver today plummeted almost 18%. Considering that the market was close to $40 per ounce just two days ago, this recent price fall is extreme to say the least. On a technical basis the market gave back 61% of its gains on its lows today from August of 2010 the beginning of this rally. 

Copyright (c) 2011 Wagner Financial Group 
 
Before deciding to participate in Gold or Silver investments, you should carefully  consider your investment objectives, level of experience and risk appetite. Most importantly with futures activity do not invest money you cannot afford to lose.There is considerable exposure to risk in any futures exchange transaction, including, but not limited to,leverage ,and market volatility that may substantially affect the price of  gold and /or  silver. Moreover, the leveraged nature of Futures trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as 

well as for you as well as for you.