Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 1% and 2% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 17 2017
By: Ira Epstein

Next-Generation Crazy: The Fed Plans For The Coming Recession
By: John Rubino

COT Gold, Silver and US Dollar Index Report - November 17, 2017
By: GoldSeek.com

Gold Miners’ Q3’17 Fundamentals
By: Adam Hamilton, CPA

Bonfire of the Absurdities
By: John Mauldin

The Social Security Inflation Lag Calendar - Partial Indexing Part 1
By: Daniel R. Amerman, CFA

Rob From The Middle Class Economics
By: Gary Christenson

GoldSeek Radio Nugget: John Williams and Chris Waltzek
By: radio.GoldSeek.com

The Metals Market Is A Mess And Will Likely Continue To Frustrate You
By: Avi Gilburt

 
Search

GoldSeek Web

 
A Bombed Out Market Is Bottoming

By: Mary Anne Aden and Pamela Aden, The Aden Forecast


-- Posted Friday, 30 August 2013 | | Disqus

The war drums are beating. This has driven gold higher and the June lows look like a classic bottom.

 

Think about it.  Gold had been dribbling down all year, but when the Fed began its tapering talk in mid-June, it pushed gold down to new lows.

 

The already bruised gold price broke down, plunging to the $1200 area in late June, only to zip back up above $1300 four weeks later.

 

Funds were then quick to cover their record shorts, while net long positions jumped way up. 

 

Plus, with gold at extreme oversold levels, the most since 2008, the downside was limited.

 

In fact, we don’t think gold was as hated in 2008...  a ripe situation for the strong pop up we’ve recently had.

 

But we’re not out of the woods yet, and we could see more sluggishness. Nevertheless, the market is poised to rise further, which will likely coincide with the escalation in Syria.  

 

Why gold is not yesterday’s paper

 

The Asian markets took advantage of gold’s $700 fall in almost two years and bought gold... a lot of it.  And this together with the Fed’s ongoing stimulus program helped contribute to the bottoming action.

 

In the end, the price tells all, and the rest is noise and distraction.  And gold’s price today is desirable in the big picture.

 

We all know the monetary stimulus by the Fed, and other central banks, is very bullish for gold because the end result is inflationary.

 

This is one key reason why China, Asia in general, and India have been buying up gold.  They see how cheap it is and they’re taking advantage of it, just like we want you to do.  We are too.

 

GOLD TIMING: Intermediate lows at hand

 

For now, it sure looks like the decline we call D is over.  And the more time passes, the more likely the closing low at $1211.60 on June 27 was THE low.

 

Just looking at the indicators, you can see why.  The extreme D low on Chart 1B shows a bottom forming in this extreme area. This has become a springboard for an intermediate rise, we call A.

 

Plus, with the long-term indicator also at an extreme low, it reinforces this springlike formation (see Chart 1C).

 

Again, today’s low level is giving us a good opportunity to buy at good prices... and we recommend taking advantage of it.

 

For now, watch these stepping stone levels on the way up...

 

If gold can rise and stay above $1400, it’ll mean that it could jump up to the $1500-$1565 level.

 

After that we have the $1700, $1800 and $1900 levels to surpass before getting to record highs.

 

Overall, however, the current rise will tell us a lot about the strength (or weakness) of the gold market.  If it doesn’t hit a new record high, it’ll be a first for the entire bull market and a clear bearish sign.

 

If a record high is eventually reached, gold will be signaling that the bull market is ongoing and it’s strong, in spite of the almost two year correction that took 36% away from the bull market.

 

We’re watching this closely!

 

---

Mary Anne & Pamela Aden are well known analysts and editors of The Aden Forecast, a market newsletter named 2010 Letter of the Year by MarketWatch, which provides specific forecasts and recommendations on gold, stocks, interest rates and the other major markets. For more information, go to www.adenforecast.com

 


-- Posted Friday, 30 August 2013 | Digg This Article | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.