"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


Thursday, September 29, 2011

Gold market has calmed down a bit

It is still volatile but compared to the wicked roller coaster rides of recent days, it seems a bit calmer. Physical buying under $1600 has been very strong which is serving to shore up support on the chart. Still, there is not enough "umph" to take it convincingly through the $1680 level, a level which must be cleared to let this thing retest $1700.

Downside support near $1580 needs to continue to hold to keep it from dropping back towards $1550. So far the spike low seems to be safe.

The mining shares are still struggling to get anything going to the upside. The S&P has faded from its earlier gains and moved into negative territory as I wriet this. That has taken most of the wind out of the HUI.


  1. love your stuff! and you know that

    but to suggest the gold market has calmed down a bit

    would resonate as if the Boston Strangler took the weekend off

  2. Hi Dan,

    As always, thanks for your analysis!

    I wrote in a previous comment, the charts change daily, M-F; but the fundamentals loom omnipresent 24/7.

    My take on the fundamentals is the philosophy of creating currency-by-decree has seen its best time, it’s over now. Globally, printed money (and credits redeemable in the stuff) is flopping around like a fish gasping on the rocks.

    U.S. Treasury’s have a negative yield when compared to the most modest inflation numbers!

    It’s buying season for precious metals. The banksters and heggies may push the prices down as far as $1250/$24, but it won’t save them. They will lose ground, and batta-boom…the metals will sky rocket!

    Plain and simple, austerity won’t work.

    Expanding the money supply will work to foster economic recovery; providing that, expanding the money supply happens in a manner that joins labor with raw materials and technology. We need to produce more, not just manipulate more information.

    When the politicians figure that out, as a nation we can start to get well.

    My take is it's buying season for precious metals.

  3. @rhomethyrst - Dan's blog is technical blog. His analysis is based primarily on price&volume action, we should should not look for fundamental analysis hear.

  4. Looking forward to the Weekly Metals Wrap. I have an absolute load of news today: The News UNIT

    With operation twist starting Monday there could be a big upside for precious metals.


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