“Woe to the land whose king is a child and whose leaders are already drunk in the morning. Happy the land whose king is a nobleman, and whose leaders work hard before they feast and drink, and then only to strengthen themselves for the tasks ahead”. (Eccl 10: 16-17)


"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat


Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


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Monday, May 21, 2012

Gold attempting to get to that "16" Handle

Gold put in a decent performance in today's session but was stymied at that psychological resistance level of $1600. It seems as if traders are basically standing around looking at each other to see who is going to commit first to buying it above this level.

Right now there is a general hesitation to get too aggressive as there is yet another, (sigh!) summit this week in Europe, this time in Brussels on Wednesday, where the market will have to digest whatever fodder these clowns want to utter. Look for more of the same talk that we got from this weekend's gathering in Chicago - namely - growth instead of austerity which translates to money printing.

At some point this will have the anticipated inflationary impact but not until we see something actually take place besides more talk. The moment, and I do mean the moment, we get confirmation that the ECB and the Fed are going to do the only thing that they can do, gold will move higher and start another leg in an uptrend. Until then we may have to be content with it marking some time here and allowing dip buyers to come in at appropriate moments barring some unexpected news.

I have not had to change the notations and resistance and support levels on the price chart as of yet but you can see where the resistance is located near the $1600 level. Above that, $1625 or so is next.

Downside support comes in at the $1575 - $1565 level.




4 comments:

  1. your headline reminds me of the '50's pop song,

    "16 Candles",but this time around its
    "16 Handles" yep, interesting times we live in.

    http://www.denaliguidesummit.blogspot.ca/

    ReplyDelete
  2. http://humblestudent777.blogspot.com/2012/05/spx-fibonacci-fan-and-special-offer.html

    My friend has an excellent site. Thanks Dan

    ReplyDelete
  3. If hedge funds were buying bullion and shorting mining stocks it now seems to make sense that they are selling/shorting bullion and covering/buying mining stocks. The action sure suggests thats the case. ...

    ReplyDelete
  4. Dan, as much as I respect your work, you need to get off the gold thing. 1425 is next.

    ReplyDelete

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