Gold

[praveen taneja]

Gold Bulls Defend $1,560, But Trend Favors Bears Until Prices Top $1,650



Gold is on the rise this week amid technical buying, as bulls successfully defended support near $1,560-$1,570 after multiple attempts to breach those levels. Prices are attempting to form a bottom, but whether such a bottom will hold remains to be seen.

 

[praveen taneja]

Gold caught a firm bid today and managed to stay above $1610 for most of the session which is promising. It needs to prove it can clear resistance near $1620 if the bulls are going to be able to seriously squeeze that extremely large hedge fund short position. Frankly, I am not sure what it is going to take to push gold through this level if the Cyprus news and the reverberations related to that cannot do it. Whoever it is that is doing the selling up near the session highs is strong handed and will take some serious force to dislodge.

 

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60 days gold chart

 

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EASTER GREETINGS TO EVERYONE

Silver needs to trade over $2830 to be in bullish zone.
Comex copper needs to trade over $343 to be in bullish zone.
Some of the Federal Reserve officials yesterday commented that quantitative easing will not be rolled in by the near term. This has already been discounted in by the markets. No one is surprised by such comments as investors know that central bank obsession by QE is here to stay. Gold and silver are rising as people are fleeing from the euro which in turn has revived investment interest in gold. In the past ten days gold has traded over $1590 on daily closing basis and now a foundation has been laid for another big upmove. A daily close over $1611 today should result in more gains next week and in April.

The Cyprus issue dust will settle down in the next fortnight and once it settles down equity markets and base metals will rise. There are more long positions in base metals than short positions. In case copper, zinc and lead fall next week too then a lot of these buy stop losses will get triggered and another wave of selling for copper, zinc and lead. Trade will prefer to go long in safe havens before the leave for Easter which will ensure firmness in gold and the US dollar. Trade in the technical as better than expected US economic number has not had any significant impact on commodity markets.
http://news.goldseek.com/InsigniaConsultants/1364450400.php

 

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Do Western Central Banks Have Any Gold Left??? Part II
By: Eric Sprott & Shree Kargutkar

The past few months have been difficult for the gold investor as selling pressure in the gold futures market has set a decidedly negative direction for the price of the yellow metal. As fundamental investors, we always pay special attention to the supply and demand dynamics of gold and, recently, we have found it very difficult to reconcile lower prices with continued strong demand for physical gold.

While the supply of gold has remained largely static, we have seen a steady increase in demand for the yellow metal. India and China have emerged as strong buyers, consuming over half of the mine supply in recent years. Central banks have switched from being sellers of gold to being net buyers, with their gold purchases in 2012 increasing by 17% to almost 535 tonnes. Exchange traded products (ETPs) around the world have continued to add to their gold hoards, as have institutions and private investors. Furthermore, central banks, such as South Korea and Russia, have added to their bullion reserves early in 2013, which points to sustained strength in demand. These facts are important because, over the past decade, the annual supply of gold has stayed flat at approximately 4,000 tonnes.
The gold market is fairly simple to understand from a supply and demand perspective. Since you cannot fabricate gold out of thin air, supply comes from new mine production, scrap gold recycling and investor disposition of bullion. Demand comes from many sources including investment demand, electronics, dental and industrial uses to name a few. There can be short-term aberrations between supply and demand where the market can be oversupplied, or demand can outstrip supply, however, over a longer period, supply should equal demand with the price acting as the equalizer. Under this assumption, the amount of gold that the US is exporting should equate to the amount of gold that the US is not consuming over a long enough time frame.
http://www.sprott.com/markets-at-a-glance/do-western-central-banks-have-any-gold-left-part-ii/

 

[praveen taneja]

Gold is a bubble!!

:rofl::rofl::rofl::rofl::rofl::thumb::thumb::clap: Nice observation:rofl::rofl:

 

[praveen taneja]

Gold continued to trade in a narrow range once again yesterday, with the April gold futures contract closing marginally lower and ending the gold trading session with a narrow spread down candle, closing just below the psychological $1600 per ounce level at $1594.80 per ounce.

From a technical perspective the upper level of price resistance still remains firmly defined at the $1618 per ounce level whilst the downside support is $1555 per ounce area. For the time being both of these levels remain key.

 

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Gold, a Hedge Against Financial Repression?

Axel Merk
Merk Hard Currency Fund
Posted Mar 30, 2013

Had those with money tied up in the Cypriot banking system owned gold instead, they might have been able to watch the unfolding crisis relaxing on the beach. So why isn’t gold going through the roof? Is Cyprus too small to matter? Can it happen in the U.S.? Should investors hold gold?



First, be aware that bank failures do happen, in Cyprus and the U.S. alike. A bank deposit is nothing but a loan to the bank. To the extent that these deposits are guaranteed, the creditworthiness of the guarantor should be considered. In Cyprus, the government guaranteed deposits up to €100,000; in the U.S., the FDIC guarantees deposits up to $250,000.

In the U.S., unlike in Cyprus, there is a well-defined process to seize and unwind insolvent banks. Crises will happen, but they are less stressful when sound institutional processes are in place. The other key difference is that U.S. banks have generally rebuilt their balance sheets, whereas some European banks have dragged their feet, hiding behind national regulators. Stern words from the European Central Bank (ECB) to get their act together have fallen on deaf ears. As the European Parliament just voted to give the ECB central banking supervision authority, the Eurozone is inching in the direction of a more coherent regulatory framework. Even so, neither a pan-Eurozone bank guarantee scheme (that would imply Germany is on the hook for all deposits), nor a strong resolution authority are on the horizon
http://www.321gold.com/editorials/merk/merk033013.html

 

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I Moved my Money Out of the Stock Market-Laurence Kotlikoff
25 March 2013
By Greg Hunter’s USAWatchdog.com

In January, Economist Dr. Laurence Kotlikoff said he was “worried” that the economy was reaching “a real threatening point.” The Cyprus banking crisis hit the Globe last week. Now, when asked if he was still “worried,” he replied, “This morning, I moved my money out of the stock market . . . because I’m worried about Cyprus.” Dr. Kotlikoff explained his dire concern by saying, “The rich people are already running on these banks. That’s been going on for a year. . . . The everyday working people could start visibly running on these banks, and that could spread like wildfire throughout Southern Europe and Northern Europe and into the U.S. because we have a banking system that’s built to fail.” Dr. Kotlikoff also says, “It’s going to happen in the form of a crash in the bond market. Interest rates are going to skyrocket, and we’re probably going to have high inflation because the government is printing money out the wazoo.” Join Greg Hunter as he goes One-on-One with Economics Professor Laurence Kotlikoff of Boston University.