Greetings!,

After witnessing a fairly strong rally in the precious metals markets in overnight trading, gold and silver closed off their lows with gold maintaining a solid eight $8 rise on the day.

This marks the fourth session in which we have seen gold react again as a safe haven investment, primarily due to the uncertainty in the European Union. In particular traders are closely monitoring this weekend's election in Greece as this should continue to be a supportive factor in gold.

We have also seen the gold market react to the release of new weak economic data in the United States today, resulting in concern once more that the Fed will initiate another round of quantitative easing in attempts to kick-start the U.S. economy.

Economists continue to debate the validity of this type of "Keynesian"  monetary policy by which deficit spending is deployed to correct negative economic circumstances. I still believe that Nobel Prize winner Milton Freeman's economic view that control of the money supply is the key to economic stability. This theory holds that the U.S. Federal Reserve Bank should maintain a tight monetary policy based upon annual GDP growth. 

As always, wishing you good trading

       Today's video 

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Proper Action

 GOLD & SILVER :   

Long August gold @ 1619 stop below 1560

Long silver at  28.80 stop below 28.00

MARKET FORECAST

Gary S. Wagner

Gold & Silver: We have seen the precious metals markets rally for the last four days. On a technical basis the fact that gold was able to maintain a price point above the intraday low of 1520 shows solid support. This third testing of this price point now seems to be definitive. Since then we have seen an almost $100 price advance in gold on a closing basis. We have also seen soft resistance areas in both gold and silver containing price action. Today's video will look in detail at those resistance levels so we can plot our upside targets.

Gold Chart   

Silver Chart

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