Greetings!,

The financial world at large has reacted to recent elections in Europe. The reaction is nothing short of panic selling. The European Union as we know it is in a state of uncertainty. Austerity measures, which have been firmly in place are now in a state of flux. Many believe this could be the first step in the demise of the E.U. as now constituted. 

Today's meltdown included equities worldwide and a major meltdown in the precious metals markets with gold closing off over $35 per ounce, thereby breaking through critical support.

In Greece the new leftist president has a mandate to end the Greek political impasse by forming a governing coalition. According to sources he is trying to form a new Greek government and has bluntly declared that his country is no longer bound by its pledges to impose crippling cutbacks in return for rescue loans.

In France similar mandates threaten austerity measures in place through agreement with Germany. The financial community worldwide has spoken as stocks have been liquidated and major money moved into U.S. treasuries. This is the beginning of something large, the outcome is uncertain, the path uncharted. 

As always, wishing you good trading,

       Today's video 

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Proper Action

 GOLD & SILVER :

 Gold: long in gold @ 1650  Stop Hit  1623 

Silver:  Awaiting trigger... no position

MARKET FORECAST

Gary S. Wagner

Gold & Silver: On a technical basis, as you can see from the chart below, gold broke below a critical long-term support line, trading over $35 lower on the day. Gold's high today was 1639, which just happens to be a critical Fibonacci support level. Today's video will look at major support levels in gold, if in fact prices should continue lower.

On a technical basis silver continues its downward march. Today's video will look at three critical support levels to determine where these current falling prices might find their conclusion. 

Gold Chart

 Silver Chart:

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