Gold And Silver – Swiss National Bank Rally. Enough For A Change?
by Michael Noonan, Edge Trader Plus It would seem that last week’s rally in gold was Swiss National Bank-driven, plain and simple. It is difficult to get a handle on the ramifications of what just happened with the Swiss “unpegging” from the Euro. It was becoming prohibitively expensive for the SNB to keep buying Euros and trashing their own economy in the process. Ostensibly, this is a tale of a central bank telling the US and the rest of the EU, enough! We have had it, and we are now going to be more fiscally responsible. Right. Just after opting not to have the Swiss franc backed proportionately by gold, a move that would have been an act of fiscal responsibility. If there is one constant about world-wide central bankers, it is that they lie on an ongoing basis. The truth, if it ever comes out, may not become apparent for the next several months. It makes no sense for one part of the central banking cabal to pull a “surprise attack” on the rest of the group. If there is one thing certain about this insidious group is that they always act in their own best interests, which means always against the public’s interest. The SNB telling others they have had enough should be viewed as more kabuki theater. The least surprising aspect of the SNB move toward “independence” is that there was probably a fantastic fortune made, in the process. That would be more in keeping with what to expect. The pulling away from a 1.20 peg to the Euro is as much an independent move as is the unmitigated destruction of the crude oil market, equally as “accidental” as the suppression of gold and silver over the past few years, [actually decades], or the freak events of Ukraine, where an elected government just happened to undergo a CIA-led coup, the whole sorry event a tragic mess. The world is changing, and the sequence of events become shorter and shorter from one to another. While the Swiss have center stage, all other events are still taking place, and foremost among them is the destructive US starting wars wherever possible, threatening and enforcing economic warfare. Is it an accident that two days prior to the slaying of a dozen people in Paris that French President Hollande was calling for recognition of Palestine and an end to Russian sanctions? The US has an uncontrollable fixation with Russia and the rest of Europe suffers for agreeing to be the US sanction lap dog. Woe be to any country, including France, that gets in the way. [Including the SNB, as well.] Enjoy the winter, Europe. You have sown the seeds of self-implosion, blaming Russia for everything, almost all of which is fabricated. In response to such ongoing provocations, is it any wonder Russia has turned East, now having Turkey be the transit country for the natural gas on its way to other destinations? Europeans have always viewed themselves as being smarter and more sophisticated than Americans. Time to have another look in the mirror. Sad course of events everywhere, yet all purposefully brought on by those in charge, or seemingly in charge. It makes no sense to speculate from the sidelines while the backroom deals are kept far away from scrutiny, so a look at the charts, and if there is one constant about them, they never lie. They may not always be clear until after the fact, but they relate reality as it is. We are seeing a positive change of behavior as both PMs have rallied with strong closes and increased volume, both attributes of buyers in more control than sellers. The weekly trend remains down. It is always good to keep the weekly chart in mind to temper the enthusiasm of the more myopic daily and intra day moves. Regardless of any of the charts, there is nothing that dampens the message to keep on accumulating physical gold and silver. The world events are circling the drain like an unstoppable eddy. If the wealthiest of countries are accumulating gold and silver as much as possible, following their lead is a worthy mantra. The current price of gold and silver is not that important. Having and holding those proven forms of real money can only be a very wise undertaking. Last week, there was little reason to view the markets in a more positive vein, after so many weeks and months of disappointment. The market needs to prove itself and we now see some steps in the right direction, finally with a higher swing high. The D/S bar is where Demand easily overcame Supply, rallying on very strong volume and closing just as strongly. What needs to happen next is forming a higher swing low after the next reaction. Ideally, the correction bars should be smaller and on decreased volume, telling us that selling is drying up. When that happens, demand takes over, once again, and price should move higher. If the next reaction down can stay above a 50% retracement, and that level is just about where the D/S bar low is located, around the 1225 area, it will be a positive sign. These are just guidelines, to be prepared as the market unfolds in case a buying opportunity develops. Continue Reading>>>