$1,450 and $16.50 New Floors In The Making?
$1,450 and $16.50 New Floors In The Making? by Rory for The Daily Coin
UPDATE: 3:03pm EST – It appears that silver is going to continue struggling to break through the $16.50 mark. Every time it approaches the line the cartel is waiting with a truck load of contracts to knock the wind out of the sails. Silver has recovered some of the downward motion from this morning, but it is still a long-row-to-hoe for silver to get up and over the $16.50 mark. You can see that silver momentarily breached the $16.50 line just as London was opening. It was short lived and the cartel stepped in fully loaded and ready to do what they do so well – beatdown the metals!
Gold…well, that’s a different story.
Gold was knocked down earlier today but the traders were having nothing to do with down for too long. Gold hit approximately $1,457, then bounced and has been climbing ever since. It is currently back to staring $1,470 in the face at approximately $1,468. This is the mark we discussed earlier today. Once $1,468 is breached the next stop will be $1,502 – $1,508 range. In other words, solidly above $1,500. This brings in all kinds of new ideas about next level gold.
Here is a another view of what is happening as this update is being produced. The ten year chart below is from SilverPrice.org: As you can easily see gold is in “open water” at this point. This is a ten year chart…
And if we look at a twenty year chart the picture is oh so clear…
UPDATE: BEFORE Publication!! Before I could even hit “publish” both metals are racing back from which they came!! Nothing to see hear folks, move along!!
The metals are making a race for the moon this morning, but the question always is – will the latest floor hold? Both metals have been sniffing around their respective half way point – $50 in gold and 0.50$ in silver for the past couple of weeks. We actually ask, back on July 24, about the Battle Line Drawn at Silver $16.50? That mark is showing incredible resilience. It seems the cartel knows nothing good awaits them on the other side of $16.50. Other than it being a nice round number why this line is so important to them is a little unclear to me.
Silver, or so it appears, will run a little higher after establishing $16.50 as a new floor. The “run” will only be up to about $17.20-$17.25 then up to to do battle at $18.50. But we are getting way ahead of ourselves. Silver needs to establish $16.50 as a new floor.
On the other hand gold is well north of $1,450 and, we can only hope, that it holds above this line and establishes a new floor at the $1,450 mark or even higher. If gold will stay above $1.450 for a 2-3 trading sessions there is a chance for it to continue to move higher.
$1,468 is the next mark and from there gold should move up to $1,502 – $1,508. Once this is settled, $1,600+ is next stop for gold. Don’t think for a minute $1,450 – $1,458 range is not paramount for the cartel. It’s short jump to $1,468 from there.
With both metals now in retreat will we see them falter into the closing of the pit? Will it matter?
Both gold and silver seem to have a determination about them that hasn’t been seen in several years, actually, not since 2011 when both pushing, pushing, pushing higher all the time. The cartel has gotten smarter, but so have the traders. Both sides of the chart seems to be setting up for an epic battle as the year progresses. With all the turmoil around the world, trade wars, Federal Reserve reversing policy, Christine Lagarde now at the helm of the ECB this has to make “big money players” a whole lot nervous for what’s just around the corner.
Maybe the metals are simply responding to the Asia nations wanting to get out of their local currency and “park” money in gold and silver while this trade war is beginning to ramp up – again.
It will be interesting to see how the “pit” closes and what the cartel is able to do. Will the traders allow their profits to be wiped out; will the algo’s take over and force the traders to bow before them? We will know in about two and half hours! We will update you sometime mid afternoon – before the Globex market opens, but after the “pit” closes.
Below are static charts to capture the moment. Isn’t it funny that both charts touched a nice round number then shot lower? Funny how that works.