Greetings!,

Did you want double or triple digits with that order ?

Today we witnessed a continuation of aggressive selling in the precious metals markets. Gold in particular was hard hit as it plunged through $1700 per ounce. Trading almost $30 lower on the day we saw a double digit decline in price. Triple digit losses were seen in the S&P 500 as it also was hit hard and lost 1.5% in value the greatest single day drop this year. A strong U.S. dollar helped fuel this sell-off, as continued concern emerged about the economic health of the European Union.

Both gold and silver lost 2% in value in today's trading activity. In today's video we will look at targets and price scenarios.

As always wishing you good trading,

       Today's video 

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Proper Action

GOLD & SILVER 

Awaiting a proper signal...  for now we are on the sideline.

In at 1580 per ounce out at 1700 per ounce gave our first gold trade $120 profit when all was said and done. That amounts to a $12,000 profit per $10,000 invested in one Comex 100 ounce gold contract. Thus, even with the drastic sell-off last week we were able to see over a 100% return on our first trade of the year in gold.

SILVER:  Silver today had a low of 33.55. Last week we raised stops to 33.80. That stop was effectively taken out when silver broke into the lows in trading today. Consider the following: We went long at 28.10 and got out at 33.80. That gave us a total profit of $5.70.

Each Comex contract controls 5000 ounces silver. Which means the equivalent price moves per contract was $28,500. Since the initial margin to control one contract is around $22,000, this first silver trade of the year amounted to over 100% return. As in gold we are sitting on the sidelines.

MARKET FORECAST

Gary S. Wagner

Gold & Silver: on a technical basis, both gold and silver today broke through strategic interim support levels based upon Fibonacci retracement. We are currently in an intermediate wave 2 count. Remember, as mentioned, that wave 2 many times will be the deepest or sharpest of the corrective waves found within bullish impulse runs. That being said we will again look at the areas of 50 to 61% of the price witnessed in this first rally of the year. What is important is that we are on the sidelines and have already pulled ample profits. Now we are simply awaiting confirmation that the minor A wave has concluded, and look to make a brief trade taking advantage of the rally in the B wave. This will be followed by a final corrective wave "C," and then we should reenter a very sizable rally during an intermediate third wave.

Gold Daily Chart

 SILVER Daily Chart:

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