Greetings! 

The precious metals markets opened softly to begin the week in Australia. Trading unchanged or a few dollars lower, gold then found support as the Asian markets opened. Eventually, trading $10 higher, gold seemed to be highlighting concerns about the E.U.'s current debt crisis. Once again we see Greece in the glaring limelight as that country failed to reach any deal with its private creditors over the weekend.

I continue to contend that there is a high probability that Greece will actually default on its loans. Unlike the dominant European Union players, Greece insists on outspending its GDP by leaps and bounds. Furthermore, the debt crisis the Greeks currently face has been deepening as a real lack of solutions now seems the norm. 

The U.S. Federal Reserve will conclude its meeting on Wednesday. Speculation abounds about whether they will announce a target for inflation. There can be no doubt we might be in store for a very interesting week.

As always wishing you good trading,

 

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Proper Action

GOLD: Maintain long (1580) position. A base has been forming above 1665. I am looking for a continuation of this rally. My upside target of 1686 has not been reached; however, we have seen an intraday high of 1681.

SILVER: Maintain Long @ 28.10. I have moved from modestly bullish to outright bullish. Silver does in fact seem to be trading in tandem with gold. Our basic resistance of 30.80 was taken out last Friday. If silver is able to form a base in this area today's video will discuss our next upside targets.

MARKET FORECAST

Gary S. Wagner

GOLD & SILVER:

On a technical basis it is clear that we are firmly trading within our first intermediate impulse wave, wave 1. As you know, until we reach a determination of wave 1 we will not have exacting benchmarks for the four waves that will follow. Noteworthy is the fact that we are coming close to 1686, which was my initial target. At the same time my initial target of 30.80 in silver was taken out on Friday. We will have to see how the market reacts as this week progresses. With a Federal Reserve meeting concluding on Wednesday, we could be in for some wild swings in both gold and silver.

Copyright (c) 2011 Wagner Financial Group