Greetings!,

Since mid-January gold has consistently priced itself above its 200 day moving average. Yesterday for the first time since then, gold dropped below the 200 day moving average. Technicians will look at this carefully. However, long time fundamental factors have begun to reemerge in the market. Reports and market sentiments that say that Greece will in fact he able to get a handle on its current debt crisis has pressured the dollar and been supportive of gold. Also released today was a U.S. report showing an increase in employment hiring in the United States.

As odd as it might seem this outlook in the metal news has been supportive of gold. With a positive economy and outlook for profit, many players who were absent from the gold market since it tumbled believe it might be priced right and are looking to reenter the market. 

The African precious metals mining company, Randgold Resources, reported that they expect volatility to increase in gold prices as the metal moves in a range from $1500-$2000 per ounce. The overarching theme was increased volatility. Today's video report will speak about just that and a trading range that has developed within the gold market during the recent few months.

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: today's video will look at three factors. First, we have found a little bit of market support that has created a candlestick pattern called a piercing line. I will discuss that pattern and what criteria still need to be met before buy triggers are issued. Second, we will look at the range that has developed within the marketplace, something not seen as gold went through a parabolic rise. Third, we will look at the fact that increased volatility seems to have reemerged within the marketplace.

Gold 720 minute chart

 SILVER daily chart:

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