12/22/2011 The Daily Report
Greetings!

As we get closer to the holidays gold continues to meander, but meander to the downside. It is currently trading above $1600 per ounce, although it has drifted below that price point a couple of times in trading last night. 
 
Closing lower, the precious yellow metal is reacting to a report that shows that positions in gold backed ETFs have been on the decline over this last week. Falling to the lowest level since mid-November, "investors sold the metal to cover losses in other markets," (this according to Bloomberg news). 
 
With a better than expected report, unemployment fell to the lowest level since April, 2008. This is certainly a positive sign for the U.S. economy - a bearish influence on the precious metals markets and a positive bullish influence on the equities markets.
 
Still, when looking at investment performance over this last year, even with the recent sizable correction, gold is still in double digit returns, up about 13% on the year.


Merry Christmas and may your trades be profitable next year so that you can have the best of all possible New Year's. 

 
Executive Producer
The Gold Forecast 

gary@thegoldforecast.com 

On Skype Gary.S. Wagner 


 

 

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Proper Action

Gold : long @  1588

 

 

 Silver: long @  29.10

 

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MARKET FORECAST

Gary S. Wagner


  

  

Gold: The chart above, a daily Japanese average chart, although still in green shows any uptrend beginning to weaken. Today's candle can be identified as a Doji, indicating at least major consolidation and possibly pointing to a reversal in direction. As we get closer to year-end I expect volume to become light; such volume can create larger price moves than normal. We are still looking for the conclusion of the last "C" wave completing a major fourth wave count. Over the last two years we have seen corrections begin close to the end of the year and conclude by February of the new year. This year the correction began earlier than in previous years but it seems likely that the conclusion of this correction will occur earlier than usual in the first part of 2012.

 

 

SILVER:  Today's report on a reduction in unemployment benefits bodes extremely well for the industrial precious metals. Palladium is currently exhibiting a nice upside move, and it is renewing moderate bullish sentiment for silver. Although silver will typically follow in the footsteps of gold, sunlight indicating an improving economic scenario within the United States would provide a well needed bullish push. Today's report will look at support resistance and the consolidation we are currently seeing in silver.

 

 

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.