Greetings!,

Today's activity in the precious metals markets can be best characterized as a risk-off mentality. Over the weekend, reports surfaced of continued concern about the European Union's sovereign debt crisis. These reports spurred the U.S. dollar to higher pricing that in turn put pressure on gold and silver. Based on the Kitco gold index, the loss of four dollars was 95% attributable to a change in the U.S. dollar.

However, I believe it is the FOMC meeting, and more crucially the comments that will be issued via the Fed chairman's statement on Wednesday, that traders will look to for insight into the precious metals future pricing. 

 As always, wishing you good trading,

       Today's video 

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Proper Action

 GOLD & SILVER :

 Gold: Maintain long in gold @ 1650 avg Stop below 1623 

Silver:  Maintain  Long @ 32.46 avg Stop below 30.52 

MARKET FORECAST

Gary S. Wagner

Gold & Silver: both gold and silver were trading lower on the day. On a technical basis, as you know, we have been plotting our current correction as a compression triangle. As you can see in the gold chart below we have, for a second time, traded just at the lower support line of the triangle. There can be no doubt that on a technical basis we are at a critical level and need gold to maintain a price structure above the support line. A break below, and I mean significantly below, would invalidate this pattern. Silver also traded lower on the day, with its low prices just at support also.   

Gold Chart

 Silver Chart:

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