1/11/2012


Greetings!

For a second day in a row, we have seen a nice showing and firming prices in the precious metals markets. Gold is leading the way; it is currently up $10 on the day, trading at 1642-1643 (bid ask). Silver is also trading higher. However, silver is trading close to unchanged at +3 cents on the day.
 
According to Bloomberg, gold imports to China from Hong Kong rose to a new record in November. Purchases by mainland China of 102,779 kilograms from Hong Kong showed an increase of over 86,000 kg from October. This tremendous rise is being attributed to both consumer purchases for the lunar new year this month as well as an investor hedge against potential financial turmoil.
 
There can be no doubt that on a technical basis gold sits at a critical level and in my opinion needs to break above 1645. A move above this price target would give very strong confirmation that we in fact have concluded our multi-month correction, and the low of 1530 seen recently will remain the low In gold prices.
 
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.

We have come up to this level, but not taken it out. 

Consider raising stops if market fails to take out 1645.

 

Silver: I remain modestly bullish. 

Longs (28.10) should look to protect profit if any 

real signs of weakness appears. 

 


MARKET FORECAST

Gary S. Wagner

   

GOLD: My current count assumes that we are in wave one of a five wave intermediate count. As I discussed yesterday, 1645, on a highly technical basis, is a critical level that we need to overcome. Not only would this give us technical confirmation that the correction that took gold from its recent high of 1802 to a low of 1525 has concluded. It would also signal a good potential for the continuation of this current uptrend with our next resistance level right around 1700 per ounce.


  

SILVER: After yesterday's tremendous 3% gain in price it is not surprising to see silver consolidating today and gold outperforming in terms of a price advance. The single candlestick that has been developing is a "doji," and today's video will describe in detail the possible outcomes of this candle type.

 

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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.