1/10/2011


Greetings!

Today we have witnessed solid gains not only in the precious metals complex but also the equities markets. Moving to a three-week high, gold advanced 1.3% to close up over $20 on the day. Silver also had a solid game closing over 3% on the day to trade solidly above $29 per ounce. Trading up $.92 on the day, silver closed just shy of $30 per ounce and currently is trading at 29.97. Although it has been cited that it is the dollar decline that has fueled this advance, the Kitco.com gold index shows that of the $21.20 advance only $2.60 is attributed to the change due to the weakening US dollar and $18.60 due to normal trading or buying.

It is quite likely that this rise can be attributed to safe haven buying as well as short covering. As far as our fundamental factors go there has been no real news or change in the European Union's debt crisis or other factors typically attributed to moving precious metals prices.

It has come to my attention that a serious error has occurred in regards to our daily e-mails, such as this one that we send out to our subscriber base. I have just discovered that during my latest travels, which began on 27 December, the daily e-mails were being sent to an old list and not the most current proper list. I am deeply sorry for any inconvenience that has occurred because of this error. Although this error took place in my absence I am 100% responsible and am currently in the process of reviewing the lists to determine which subscribers did not receive my standard e-mails from 27 December to the end of last week. To that end I will add two weeks to those subscribers with my humble and a heartfelt apology.

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. Next level is 1645-1650. I remain bullish.

I thought we would see a correction here but I am glad I was wrong!!!

Consider raising stops if market fails to take out 1645.

 

Silver: I remain modestly bullish. My concerns yesterday as to 

 whether silver will move in tandem with gold have been negated. 

Longs (28.10) should look to protect profit if any real signs of weakness appears. 

 


MARKET FORECAST

Gary S. Wagner

   

GOLD: Although I was looking for a possible correction yesterday I am very pleased that this scenario did not unfold. My current count assumes that we are in wave one of a five wave intermediate count. When comparing this current wave one to the last wave one, 1645 would give us equal price moves. Since wave one is typically used as a benchmark for the following four waves, a comparison to the last wave one as well as Fibonacci retracement numbers are our best technical tools. For that reason we need to be cognizant of potential resistance at 1645.


  

SILVER: We have seen silver move more than 3% today to show a very nice gain. Should this rally continue, our next real hard resistance occurs  

below $31 per ounce at 31.84.

 

 

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.