There are two things we know for certain about gold and silver: fundamentals do not apply currently, and there are no signs to indicate an end to this half-decade old bear market.
There have been many calls for a turnaround in gold and silver since 2013. In fact, the calls were not just for a turnaround, but also calls for $10,000+ gold, and $400+ silver, starting in 2014. It became apparent to us in the first half of 2014 that it would end with a whimper, just as 2013 did, and as 2014 continued, it seemed equally as likely that 2015 may not fare much better, and it not only did not, but it got worse with lower prices and the prospects for still lower prices to come. This puts the first part of 2016 in question…
It makes no sense to discuss fundamentals as applied to PMs because they are inoperative at the present time, thanks to globalist US central bank manipulation, (throw in the UK). It is taking far longer than most expected for gold and silver to reflect the incredible world imbalance between issuing endless fiat, corrupting bonds, and hiding everything behind a shadow derivative market.
There can be no doubt that ownership of physical gold and silver will reward their holders. It has been proven so throughout time, and it will prove to be the case this time around, as well. Keep buying, keep holding.
Now to the charts!
U.S. Dollar Index
There is no way to know how much higher the deception of the fiat “dollar” will go.
Gold: Weekly Chart
In any/all Trading Ranges (TRs), a resolve is reached as price moves farther and farther along the Right Hand Side (RHS) of the TR. There will inevitably be signs of some form of ending action that declares the down trend to be finished [but] we have not yet seen any such sign.
The sooner price can make a new recent lower low, the greater the probability that the down trend will end. In that regard, everyone who wants to be bullish should cheer on lower prices, for now.
Gold: Daily Chart
If the daily chart conveys any message at all, it says the down trend is not over, and the probability of a new recent low is greater, as of last week. The EDM (Ease of Downward Movement), since the mid-October high is an overt statement that sellers remain in full control, and buyers remain unable to help their own cause.
The trend is down, and knowledge of any trend is…one of the most important pieces of information one can have. We have been making this point for the past few years and will continue making it until a change has been confirmed.
Never fight the tape, an old saw that will always remain true.
Silver: Weekly Chart
Compare the TR section from June 2013 through October 2014, with the lower TR from November 2014 to date. The latter, lower TR has smaller ranges and is more compact. This is the market advertising the fact that sellers, while still in control are finding it more difficult to push price lower and faster over the past year. It may be a clue that the end of this protracted TR gets closer to ending. All that is needed is a form of ending action, and there is none…
Silver: Daily Chart
More patience is required in holding gold and silver. Buying and holding still makes sense. The fiat “dollar” cannot and will not survive.
[The above article, written by Michael Noonan (edgetraderplus.com) is presented by the editorial team of munKNEE.com (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (see sample here) in an edited ([ ]) and abridged (…) format to provide a fast and easy read.]
Original source: http://edgetraderplus.com/market-commentaries/gold-and-silver-deception-not-fundamentals-rule-pms
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