What Happens To Gold And Silver Next? Look Out Below?

Yopp, to make a wager on that? I propose one 2013 silver round to the winner. You pick a price for AG/AU, so will I, by October 1st, and the closest wins. Unlike so many, I do not virw my speech as free, I am willing to stand behind it. Are you?

Just wanted to wrap up yesterdays action-

Both silver and gold started the AM with gap's down. The action happened on the positive reaction to the jobs number. There's a couple things we can take away from the markets reaction to gold and silver yesterday.

1- continued positive economic data is pushing safe havens lower, including gold

2- Gold and silver ended at the low of the day. I think its pretty clear had we not been ending the week, we would have seen fresh yearly lows for both.

3- the move up that happened during the week fizzled quickly in regards to the currency moves in the Yen, DXY, Euro and other currencies.

4- gold, despite repeated attempts to get into the gap, failed.

Overall, a very weak technical picture for silver and gold and I do think it sets up both for yearly lows, perhaps as soon as next week in gold and silver. Furthermore, going back to safe havens, the long bond continues to nose dive and the USD also is ripping lower. More proof that safe havens are not in great demand, and that includes gold.

Total wash-out at the end of the day! I'm holding back on buying at this point. Just getting a bit of green ready for the teens this summer. At $18, I'm a buyer.... maybe...depending on premiums & when/if they mellow out like in the big drop in April...no rush, enjoying the sunshine...

I see. A word not worth a wager is no word at all. I graciously accept your resignation.

I can't see myself buying anything before the end of the year when the 2014 issues are released. I bought half an ounce of gold back in February and you can imagine how that's gone for me.

I've been reading this thread since it started. I do find the info. here very helpful. I appreciate OP's opinion & thoughts on pm's, unlike others here. I was always taught "If you have nothing nice to say, then say nothing."

I also haven't bought since the drop. I'm patiently waiting for 20 or lower. At that point I will make a move. Gold will also be on the shopping list.

Silver is used/needed to much in the manufacturing of many items we use everyday. So, IMHO, it will go back up. But, in the mean time I'm enjoying the roller coaster ride & patiently waiting for the big payday.

yup7676, Keep your posts coming.

Ok lets get into the action for today but first address some items

1- North asked about what we call OPEX. Hard to say North, it will depend on the individual asset. Each one could see wild moves and then perhaps even be "pinned" to a certain number. Such as, say GOOG, it could receive a 900 dollar "pin" after moving say 15 pts in either direction. So it just all depends.

Some traders will take advantage of the price action if it is volatile like that. Really all that is happening tho is that market participants are either closing out and or positioning themselves for the next quarter ahead.

So at this stage, we really don't know what happens. Could something happen? Certainly it could. just need to again, be patient and watch and see. If I see anything happen during the day I will be sure to let the members know here, just as I did the day of the currency fluctuations.

2- @PimPim- not sure where you are getting your info but you are wrong. First, ANYONE can get the COT, Commitment of Traders, online. Its no secret, its not hidden and its out there everyday and available at the end of the week, so no big deal. Second, that data is always days and weeks behind.... I mean really, the big funds and institutions are not going to release the data real time. They are NOT going to even share it with each other, trust me on that, NO TRADING FIRM is going to want to share what they are planning on doing with another because its all about big profits for THEMSELVES.

Thirdly, it is not US Banks that are involved in the commodities markets, its only a handful of Money Center banks, such as JPM or BAC. When you say US Banks, you could be saying your local family owned mom and pop bank or local community bank is buying gold and silver. Fourthly, EVEN if the COT were to say short positions were scaled back, the COT cannot trump the price action. the price action is saying there is NO FUND money coming to buy gold and silver at this point. There's no heavy volume.

Furthermore, as I have pointed out, that gap, back from 4/15 continues to trend line resistance, that is to say the selling that happened that day is very hard for the current buyers to overcome. Finally, IF there was increased buying, we would see accumulation, in the price of gold, which would be evidenced by days and days of buying. Do you see that? No you don't. sorry but price and volume NEVER LIE and all great traders know that and go off that.

I am sorry but Pimpim really seems like he's just hyping gold and silver, at least that's the impression I get.


Now lets look at whats happened today-

Going into the session today I was short silver. I covered the line short due to the fact that despite ending Friday close to the low of the day, silver, and gold for that matter, did not continue lower into today. This could signal more back and forth before we snap this range. Tomorrow will be interesting to see if it continues its move to the higher end of the range we have seen in the past.

Looking at our proxies- (over Friday close)

GLD- lower high, lower low
SLV- lower high, higher low

So while they are technically weak price wise, neither one tanked today. Could this signal then a rebound to the higher range? Or are we going to settle into a lower tighter range? One thing I do want to note is that every attempt to sell silver and gold short on lower moves never has follow through. Conversely, attempts to get into the gap and close it are always met with stiff resistance.

The best things needed therefore are time and patience. Be patient to wait and see what happens, over time these ranges eventually get resolved.

Another day of the same, small moves and continued chop in this range. However, after three days of this, it really seems like price is starting to tighten up for a move to the down side.

Why do I say that? Notice how since Friday of last week, we have that gap down. Thus far over these past 2 days, there's been no attempt to fill the gap from Friday, almost as if price is stair stepping downwards.

Our proxies-

GLD- lower high, lower low

SLV- lower high, lower low

Just sit tight and wait, this range will be broken.