Greetings!,

Today, students at George Washington University were able to experience directly the power of speech in action. During a lecture series to the students the United States' Federal Reserve chairman alluded at the possibility of QE3. This spin is much different  than the remarks given in testimony during the last FOMC meeting and in testimony to Congress.

On Friday we discussed how the recent correction in gold had essentially removed gold's premium that was related to potential turmoil in the European Union's debt crisis. Today reports surfaced about looming debt issues in Spain. (Spain's economy is almost 5x as large as Greece's.) I believe premiums will begin to reemerge in gold pricing to reflect this new awareness of Spain's struggles.

I believed throughout this entire correction that we had simply taken three steps forward and two steps back. It is now my belief that we are entering a new sequence that will begin with a new three-steps-forward move. 

As always, wishing you good trading,

       Today's video 

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Proper Action

 GOLD & SILVER :

 Gold: Maintain long in gold @ 1658 and 1642 (1650 avg) stop below 1623

Silver:  Buy signal triggered this morning 

Long @ 32.91 Stop below 30.52

MARKET FORECAST

Gary S. Wagner

Gold & Silver: on a technical basis it seems as though our assumption last week at
of a potential bottom at the 61% retracement level is correct. By adding to our positions on Friday and dollar cost averaging we now hold a 200 ounce position at an average price of 1650. For now we will maintain our stop and look to tighten it through this week's trading activity. 

We were able to identify a confirming candle today to the engulfing bullish pattern identified in Friday's trading activity in silver. As such we did trigger a buy signal. In this week's daily reports we will look to identify and forecast possible price targets for this trade.

Gold Chart

 SILVER Chart:

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