Today’s AM fix was USD 1,760.00, EUR 1,360.33 and GBP 1,088.03 per ounce.
Yesterday’s AM fix was USD 1,774.50, EUR 1,361.44 and GBP 1,092.54 per ounce.
is trading at $34.31/oz, €26.61/oz and £21.28/oz. Platinum is trading
at $1,619.50/oz, palladium at $663.50/oz and rhodium at $1,225/oz.
fell $0.10 or 0.01% in New York yesterday and closed at $1,770.50.
Silver hit $34.958 in Asia and fell to $34.27 in early New York trade
and it then bounced back higher, but finished with a loss of 0.49%.
edged down today due to dollar strength and profit taking as
speculators and some investors booked profits on 16% price gains from
this year’s low.
Gold continues to see smart money diversification
as central banks from the ECB and the Fed to the BOJ have all announced
‘stimulus’ or money debasement measures which has led investors to seek
gold as an inflation hedge.
All eyes will be on China as perhaps
the next to announce action after today’s data showed further
contraction in its manufacturing sector for the 11th consecutive month.
UK will then follow and then other central banks may announce their own
measures as competitive currency devaluations or currency wars
intensify in the coming months.
We have seen consecutive weeks of
bullish strength in the gold and silver markets. Gold has completed
what is known as a ‘Golden Cross’ and silver is poised to complete one
in the coming days.
A ‘Golden Cross’ occurs when not only the
current price, but also shorter-term moving averages such as the 50 day
moving average “cross” or rise above the longer term 200 day moving
Gold’s 50 day moving average (simple) has risen to
$1,651/oz and is now comfortable above the 200 day moving average
(simple) at $1,645/oz and accelerating higher.
Silver’s 50 day
moving average (simple) has risen to $29.86/oz and will soon challenge
the 200 day moving average (simple) at $30.47/oz.
important indicators of longer term technical strength and in
conjunction with the recent positive technical picture are bullish.
18 months of sideways-to-lower price action has “built a base”, a very
large foundational base, in markets that are in the middle of two of the
longest and strongest bull markets in history.
It is another indication that both markets are capable of moving higher in the coming months.
Bollinger the president of BollingerBands.com said in January that “the
golden cross is a great tool in a big, roaring bull market, like the
bull market from 1982 to 1998, when it tells you when you’re supposed to
be in the market and tells you periods in which the risk is somewhat
higher of corrections and such,” he said.
Gold and silver are in
such secular bull markets and the combination of these long term bull
markets, the recently trending higher markets and the 'Golden Cross' is
The last time there was a 'Golden Cross'
for gold was in early February 2009 (see chart) and gold subsequently
rose 103% in the next two years.
Similar gains are quite possible
today given the strong fundamentals. Were gold to replicate those gains,
it could see gold rise to double today's value of $1,756/oz or to over
Silver, too, saw a ‘golden cross’ in late February 2009 when silver was trading at under $14/oz.
subsequently surged 257% to over $49/oz in April 2011 for a 257%
increase in just 2 years and 2 months. Given silver’s very strong
fundamentals similar gains may be seen in the coming months.
ever physical bullion should not be bought in expectation of capital
gains. They have the potential to reward with massive capital gains but
they should be bought for diversification and financial insurance