1/13/2011 The Weekend Report
Greetings!

The Chinese have a saying "may you live in most interesting times." It became evident this week that the Chinese do in fact believe we are living in most interesting times. This can be seen in the fact that mainland China imported the most gold ever from Hong Kong. Coupled with the fact that investors bought U.S. gold bullion coins at the fastest pace in more than two years it seems clear that at least in investors' minds the writing is on the wall.
 
According to Bloomberg news, the U.S. mint sold 
85,500 ounces of American Eagle gold coins in the first 12 days of January 2012. This unprecedented run on physical gold bullion must be noted. The investing public at large absolutely believes that the uncertainty present in 2011 not only could continue but deepen in magnitude during this next year.
 
Of course this is not anything new for the majority of my subscribers as we have believed for some time that this major bullish move in the precious metals markets is definitely far from over.

 
 As always wishing you good trading,

 


 
Executive Producer
The Gold Forecast 

gary@thegoldforecast.com 

On Skype Gary.S. Wagner 


 

 

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Proper Action

 

Gold: Maintain long (1580) position. The resistance we had

at 1625 has been taken out. The next resistance level of 1645-1650 was hit and taken out yesterday. I therefore remain bullish. However, the fact that it did not close above 1645 today signals a possible corrective wave. I will look to pull profits on any sign of weakness. A special trade alert will be sent on any sign of weakness.

 

Silver: I remain modestly bullish. Silver does in fact seem to be trading in tandem with gold and, as in last year's price, shows a larger percentage gain than that of its bigger brother. Longs at 28.10 now have a two dollar gain on this trade. Our basic target is 30.80. However, we might see a corrective wave first. I will send a trade alert for gold and silver on any sign of weakness.

 


MARKET FORECAST

Gary S. Wagner

   

GOLD:  I need a technical basis in which I look at gold both from a short as well as long term perspective. First the latter: I think we have entered a period in which gold will experience a sustained rally. As for the short-term we have just seen this market move from 1525 to an intraday high of 1661, so a small correction here would not be unwarranted. If in fact we see the market correct I would look for support between 1610 and 1615.


   

 
 SILVER: As with gold we need to look at silver both long-term and short-term. As I think silver will run in tandem with gold I believe that silver will also experience a sustained rally. Although I am not looking for a new record high year, I believe $41-$42 is achievable at the peak of the rally. In a short-term basis, however, just as in gold, I would not be surprised if we saw the market correct before continuing on this extended 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.