Greetings! 

After witnessing the precious metals markets in an extended rally, today's trading activity can be best characterized as a mild round of profit-taking, or as the metals pundits like to say: a corrective technical pullback.

The European Union debt crisis is one of the major fundamental factors that has been fueling the precious metals bullish overtone. It has been reported that the current talks with Greece and private creditors has not resolved any of their issues and in fact those talks may now be at a standstill. A firmer U.S. dollar and weaker crude oil prices are placing moderate pressure upon the metals complex.

However, I think there is one more wildcard. The U.S. Federal Reserve will conclude its meeting tomorrow. Speculation still abounds as to whether they will announce a target for inflation. Asia continues to celebrate the lunar new year throughout the week, and the absence of traders from Asia might also be adding to the selling pressure.

This morning I sent out a special video update. This seems to be the quickest and best way to quickly convey changes in the markets. I welcome your feedback on this technique and would appreciate knowing whether you would like to see more of it. Thanks. 

As always wishing you good trading,

 

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Proper Action

GOLD: Maintain long (1580) position. My long-standing target has been 1686 basis cash. Yesterday's intraday high came pulled up $5 shy of that mark. That fact, coupled with today's selling pressure, signals a potential correction, or at least a price point that we should look at carefully. For that reason, this morning I sent out a special market update and suggested stops that are tight but no higher than 1650 basis cash.

SILVER: Maintain Long @ 28.10. Our initial target was hit the other day as silver traded past 31.86. Although the market went into a shallow correction today silver is still trading above that mark. The special market video update I sent out this morning has my most current stop placement suggestions.

MARKET FORECAST

Gary S. Wagner

GOLD & SILVER:

With a Federal Reserve meeting concluding tomorrow, we could be in for some wild swings in both gold and silver. This was one of the reasons I sent out a special video update. In today's video we look at the sub count for gold. On a technical basis I am looking for some confirmation that our intermediate wave 1 in gold has concluded. Our current pricing actually matches to the first sub-intermediate 1 wave, found within the last intermediate B wave.

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