We do not engage in any “predictions” of what the market will do as it is an exercise in ego and folly, and a waste of time. One need only go back to those who are making predictions for 2015 and read what was predicted for 2014 for proof. [All we can say is that] little can be added to what has already been said [and that is] that the trend remains down in gold, and until there is evidence of a strong reversal, this market continues to move along the Right Hand Side of a weak Trading Range.
By Michael Noonan (edgetraderplus.com). Originally posted* under the title Gold And Silver – Very Strong Indirect Reasons To Buy PMs.
In a market that is forming a bottom, price usually moves sideways along the Right Hand Side (RHS) of the chart. What is known for certain is that the farther price moves along the RHS, the closer it gets to a final resolution: a final bottom and eventual reversal of trend. The same applies to the ownership of gold and silver.
No one, absolutely no one, knows when a bottoming process will end, and in this regard, we refer to the ending process of the Federal Reserve fiat “dollar” being used as the world’s reserve currency. (What that means is goods on the world market are priced, and settled, in terms of dollars and no other currency, unless countries decide to trade using their own currencies and outside of the fiat “dollar” system.] The fiat “dollar” is still moving farther along the RHS of its ultimate demise.
The Western financial central banking system is losing its control, and it continues to move along the RHS of that loss of control. When will loss of control be final? That is the same as asking when will gold and silver put in a final bottom? Unanswerable as to an exact date, and almost near impossible as to a reasonable window of time. Almost none of all the experts in the PM community foresaw the extent of the decline from the highs over three years ago, and since 2013 and 2014, almost none called for the recent lows currently prevailing. (There may always be one or two, but we do not know who they are.)
When the fiat Federal Reserve “dollar” finally loses its status as the world’s reserve currency, gold and silver will have then begun to make an upward price adjustment or will begin to make the upward adjustment, and all who paid much higher prices for gold and silver will stop whining about price.
Now to the charts:
Gold: Weekly Chart
Continue buying the physical, but the paper market is dead in the water from the long side.
Gold: Daily Chart
Even with a decent rally to start 2015, look at where price is…locked within a TR. The market is not advertising any opportunity[s] at present.
Silver: Weekly Chart
Since breaking under 18, silver traded sideways for 5 weeks and then made another break to the downside. It has been trading sideways for 11 weeks. It is from this kind of sideways activity that an opportunity can arise. The problem is the overhead resistance appears to be an impediment for an upside breakout. However, anything can happen. Best to wait and see what develops and the manner in which it does.
Silver: Daily Chart
Interestingly, the sideways activity looks more promising on the weekly than on the daily chart.
Until there are signs of strong upside movement with strong closes and increased volume, it is hard to get excited for the paper market.
[The above article is presented by Lorimer Wilson, editor of www.munKNEE.com and www.FinancialArticleSummariesToday.com and the FREE Market Intelligence Report newsletter (sample here – register here) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. This paragraph must be included in any article re-posting to avoid copyright infringement.]
*Original Source: http://edgetraderplus.com/market-commentaries/gold-and-silver-very-strong-indirect-reasons-to-buy-pms
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