Greetings! 

Soaring to a seven week high, gold once again returns to a super bull cycle. Yesterday's announcement from the United States Federal Reserve to continue the policy of low interest rates has pushed the dollar to a six-week low. It is natural that this would kindle renewed interest in gold not only as a safe haven investment but as an alternative assets investment.

When coupled with the current European Union debt crisis and slow global economic growth you have the ideal ingredients for another perfect storm. Currently there are no new developments emerging out of the E.U., which means  there are also no solutions close to hand. 

Gold has moved from 1530 to almost 1730, a $200 price increase in under a month. This parabolic rise at some point will correct. The question is where. Today's video will explore potential pivot points to consider. Regardless of that, the precious metals continue to run and increase in value; even with expected corrections, $1800 gold is not too far away.

As always wishing you good trading,

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Proper Action

GOLD: Maintain Long @1580.  On a technical basis, our next real level of resistance is 1750 per ounce. Aggressive traders should have added a third leg to the long gold position anywhere between 1707 and 1711. Your stop should be sitting below 1650.

SILVER: Maintain Long @ 28.10. Our initial target was hit the other day as silver traded past 31.86. Silver is trading midway above $33 per ounce and we have gained over five dollars on the trade. I believe there is still more on the table as you already know my hard resistance level is at about $35 per ounce.  

MARKET FORECAST

Gary S. Wagner

GOLD

Gold Charts: the two charts below represent two possible sub counts found within intermediate wave one. The first chart would seem to indicate we are still in sub wave one of intermediate wave one. This seems the more likely of the two.

The second gold chart is a 720 minute intraday chart, with two candles per day.

One possible count here is that we are in sub-wave five within the intermediate wave. If that is the case, we can use wave one as our benchmark and determine possible pivot points, which are 1753 (100%), and 1818, which is a 161% extension of sub wave two.

 SILVER:

Silver continues its upward climb producing stellar results for a long position. Our next real hard resistance level still remains at 35.31.

Copyright (c) 2011 Wagner Financial Group