In spite of the pounding gold took on Thursday, I am neither surprised nor upset, and I still expect gold to move strongly up in the next couple of weeks. There is support at $1,520 and gold will have to claw its way back up to the $1,550 range all over again. It took one month for gold to rise $32 but they knocked it down $34 in a single day. We are right back to where we were a month ago. It has been that way since the beginning of the bull market, over 10 years ago. The gains are capped and the losses have no limit. Still, the trend is intact, and it is UP.
The daily chart shows gold sitting on the same support that it found twice earlier.
Yesterday in Gold and Silver Comments by Ed Steer
Despite the fact that the dollar had been on a tear for over twelve hours, the gold price was only down about four bucks by the time the precious metals began to trade on the Comex on Thursday morning.
The gold market basically went ‘no bid’ the second the Comex opened, as the U.S. bullion banks disappeared as buyers…and the price was down eighteen bucks in less than thirty minutes. From that point, the gold price ‘fell’ another eight bucks to its absolute low at 2:45 p.m. Eastern in the New York Access Market.
Once that low was in…the gold price recovered that eight bucks by the close of electronic trading at 5:15 p.m. Eastern. Not surprisingly, volume was enormous.
Of course it was silver that JPMorgan was really after…and they got it pretty good…as it was under selling pressure all day long…besides at the Comex open. The low of the day was $34.61 spot…and that low was set at 2:30 p.m. Eastern time right on the button. At that particular juncture, silver was down $1.73 from Wednesday’s closing price in new York.
But then the selling pressure disappeared…and silver gained back about sixty cents of its loss in the balance of the electronic trading session in New York, closing down $1.03 spot from Thursday. Volume, net of all July contract roll-overs, was almost double Wednesday’s volume.
Do not be fooled by the “strong” dollar action, of late. What you are witnessing is the weakness of the Euro. Chris Laid writes a lot about the Euro in today’s daily and as far as he is concerned, it is doomed! Makes sense to me.
Jim Willie lists a gaggle of Black Swans. A Black Swan is a rarity in nature and the term alludes to the unexpected event or events that can cause a market crash. All we need is ONE such event. I bet you never imagined that there were so many minefields to navigate.