9/2/2014 12:38:39 PM By: Ted Prince

 

GOLD TO 2 ½ MONTH LOW AS DOLLAR STRENGTHENS

The U.S. dollar rallied to a one-year high this morning, forcing Gold down to its lowest level in 2 ½ months. Strength in the dollar and ongoing confidence among U.S. equities offset concerns about escalating tensions between Ukraine and Russia. " It' s when the dollar hits big numbers that Gold gets punished and this is clearly one of those moments," Ross Norman, CEO of bullion broker Sharps Pixley, said. Domestic and overseas investors are closely eyeing the movement of global currencies this week as the European Central Bank (ECB) is scheduled to convene this week.  Many expect ECB President Mario Draghi to ramp up the region' s current level of market liquidity with asset purchases known as quantitative easing (QE).  The announcement of such measures would likely weaken the euro further, and bring the Gold price down with it, as the dollar would be strengthened by the potential inflationary result of such a program. 

U.S. stocks are trading somewhat lower to start the month following an August that saw the S& P 500 post its greatest rally since February.  Today' s dip comes despite reports that U.S. manufacturing expanded at its greatest pace in three years.  " The 2,000 area is still in play, and we' ve yet to move past it convincingly as it remains a speed bump in the short-term," Joe Bell, senior equity analyst at Schaeffer' s Investment Research Inc., said. " The manufacturing index was better than expected, but after that strong rally we had through much of August, the market is taking a bit of a breather."   Equities investors will also be eyeing the ECB summit this week as they try to discern the impact of heightened QE in the eurozone. 

At 1:37 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold price, $1,266.00 Down $22.40
• 
  
  Silver price, $19.18 Down $0.31

 

September 02, 2014 - 06:53:52 PDT

Gold Market Update - Clive Maund

then it is clear that a huge upleg could be in prospect from here. If it were to run to the top of its major uptrend cha... Read More

 

September 02, 2014 - 06:55:32 PDT

Silver Market Update - Clive Maund

If the next major upleg takes it to the top of the giant uptrend shown, we are looking at it rising to about $100 an oun... Read More

 

 

Daily

 

 

Chart Prepared by Jamie Saettele, CMT

 

-" The decline from the top is impulsive. The implication is for a minor low to form and for gold to trade back into 1315/20 before trading lower again (1270/80 is estimated support)." Gold has traded into resistance (slightly above as of Thursday). If a larger decline is underway, then gold should turn down between now and 1335.&rdquo

 

-Failure to hold the 200 DMA isn' t a good sign although the last hope for bulls near term is the trendline. Ultimately, it may be that gold has been tracing out a triangle since Dec 31st of 2013 that leads to new lows.

August 27, 2014 - 12:45:59 PDT

These Indicators Are Undeniable - Silver Bull Market Ahead

I believe that, as this bull market progresses, the Gold/Silver ratio will not only return to its pre-Panic average of 5... read more

8/27/2014 8:06:20 AM By: Ryan Schwimmer

 

GOLD ' LIKE THE ROCKY BALBOA RIGHT NOW'

The Gold price is mostly flat in early-morning trading. With surrounding factors seemingly piling up against Gold, some analysts believe that its  resiliency is a bullish  sign. Jeff Kilburg of KKM Asset Management said, " I think the resiliency in Gold has been tremendous. Look at every reason the bears have had to sell it --- and they have not been victorious. So I like owning Gold now, due to the fact that it' s kind of like the Rocky Balboa right now --- it' s going around the ring, it' s been knocked a bunch of times, but it will not go now ... I think Gold is coiling up. And when you see it coil up like a snake, it' s going to the upside."

U.S. stock futures are looking positive for Wall Street in premarket trade, as  major indexes continue a streak  of record highs. Joao Monteiro, analyst at Valutrades, said, " U.S. markets remain undaunted by the dizzying highs they' re currently standing at and futures are suggesting there' s more gains to be seen at the open." No major data is scheduled to be released today, so investor focus will be on corporate earnings results.

At 9 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,287.50, Up $1.30.
• Silver, $19.48, Up $0.04.