October 21,  2011    
Dear  ,       

 

All eyes look towards Europe as the current EU sovereign debt crisis remains unresolved and in limbo. Analysts and traders are looking for direction based upon two summit meetings that are scheduled to begin this weekend in Brussels. Most importantly is the fact that at least two face-to-face meeting between the heads of Germany and France will take place.

 

The European Union's current crisis requires great thinking and large moves. As such it is my belief that the volatility seen recently in the precious metals markets will continue and could escalate to even greater levels. Seventeen nations have to agree not only in principle but with their wallets. This can only complicate any solution being acted upon in a timely manner. 

 

Of significance this week is a realignment of gold prices reacting as a safe haven investment. As such is now again trading upon risk linked assumptions. If this realignment continues we could be at the forefront of a significant rally.

 

The precious metals markets broke their four-day losing streak with dynamic price gains across the board. Gold closed $21 higher and silver rose back above $31 to close at 31.40 an ounce up $.82.

 

 As always, wishing you good trading.  

 

 gary@thesilverforecast.com 

On Skype gary.s.wagner 

 

 
 

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MARKET FORECAST

Gary S. Wagner


  

 

Although we are currently halfway through a major correction, gold is currently in a corrective counter wave (B), indicating higher prices. This most recent correction I believe terminated today and this next wave should take gold above $1700 per ounce. This is based on Elliott wave analysis which forecasts a 50 to 75% move of the recent ground given up during the first corrective wave (wave A). This is at the lower end of the price target with $1724 at the fifty percent level.. We could see gold trade his high as $1800 per ounce over the next month and a half, a 75% retracement

 

 

My Outlook for silver is neutral to mildly bullish short-term and bullish long-term. We should see silver retest $33 per ounce. However before we reach that target is absolutely essential that silver hold a price point above 31.85. In today's video I will discuss in detail why that level is so critically important on a technical basis. Silver did manage to regain a serious foothold when it closed today at 31.40,  Support at 30.25 is essential, my line in the sand. If silver at any point retests that price, the outcome most certainly will be a race to lows just above $27 per ounce.

 

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.