Tag Archives: Precious metals

Is it time for the precious metals now

As you may know, there has been a brutal start of the year 2016. Equities has plummeted and the volcano have hit the bank stocks hard. All in all, we can see the stock market is down while the precious metal is up.

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Bank stocks bounced back on friday and they remain in green so far on Tuesday. Good for stocks, but not for the precious metals. A sell-off will keep the gold in a bearish trend and it is time to be cautious in the commodity market again.

In my technical analysis, the stock market is oversold while gold is heavily overbought, which means gold will continue within its long-term bearish trend. That being said, gold is trading below the upper bound of the trend channel, so we are not far away from the bull.

Technical momentum is signaling a momentum shift and for all I know, it can go way below 1000. The sell-off today is a profit taking from a strong gain last week that saw gold prices hit a 12-month high at $1,260.

Investors fear a slowdown in China, a volatile oil price and most of all; negative interest rate. The tide have changed. Increased risk appetite leads to a declining gold price, and Asian markets rallied on Tuesday. So did the European markets.

It`s not a bad start for the U.S stock markets on Tuesday either. The day after the Presidents Day long weekend is up (13.30 pm New York). Gold can consolidate around $1,210, but if it breaks the support level of $1,180 an ounce, it would negate the rally. The fear in the market is probably overdone. We are not in a recession, and if we should fear something, it should be the fear itself.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

 

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Filed under Commodities, Stock market

Is this the bottom?

Gold and gold mining stocks drops and gold are now at 1325 from 1400 last week. Gold and miningstocks have been in a bearish market for a long time now, and seem to bottomed in june. We can see a higher low in the chart, and we are probably in a consolidation period for the HUI index. We will then see some moves after next weeks FOMC meeting.

Maybe we will see the bottom before the meeting and 280 in the HUI index is a level we must take closer look at. A very important level. If it breaks thru that level, then it`s time to buy in the bull market. But before that we will probably see a higher low.

I watched CNBC and the intervju with their gold specialist Alan Gartman. He got bullish last week, but now he have turned around and says he turned bearish.

Wall Street Journal had a survey and asked market participants about the FOMC meeting. Two-thirds of the people said that they expect FOMC to launch tapering next week.

Bart Melek, vice president and director, head of commodity strategy, rates and foreign exchange research at TD Securities says gold will trend down below $1,200 as 2014 unfolds. Take a look at the HUI index below:

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Filed under Commodities