Wednesday, January 18, 2012

Gold clears $1650; looks firm

Gold has now managed two consecutive closes above chart resistance near $1650 and is looking firm at this hour. It has a very good shot at testing resistance at $1675- $1680 where it should experience some fairly heavy selling. If the bulls can break through that line, we should see a handle of "17" in front of the metal.

Weakness in the Dollar is aiding the progress of the metal higher.

Downside support comes in near $1640 - $1635 initially followed by $1620.

Silver is benefitting from risk trades being put back on as it and copper are both seeing decent inflows of investment money from hedgies. This is the first close ABOVE $30 for silver in over a month. Follow through in tomorrow's session should see it make a run towards the $32.50 level, which is what stands between it and a push to $35.


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2 comments:

  1. willydogJanuary 19, 2012 at 7:27 AM

    With Chinese New Year and India wedding season almost over, one has to wonder what it's going to take to move things higher.

    Will the hot money come back to gold and silver once the equity rally has topped out? Will the cartel beat it down to buy back all that leased gold from the last selloff at lower levels? Personally, I think that's their goal.

    One thing for sure, the price action sucks as of now.

    ReplyDelete
  2. SheetsJanuary 19, 2012 at 10:14 AM

    Good stuff, Dan.

    ReplyDelete

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