-- Posted Wednesday, 7 December 2005 | Digg This Article
Global Watch – The Gold Forecaster : Special Situation Alert – 6th December 2005
www.goldforecaster.com
- 11PM EST, December 6th, 2005
- Julian Phillips & Peter Spina
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Gold Hits 24-1/2 Year Highs / Silver at 18-Year Highs!
The price of gold reached levels not seen for nearly 25 years closing above $510 (spot) in New York on Tuesday with Silver surging to 18-year highs within striking distance of $9 an ounce.
Gold shares have been trading a bit more cautiously as if to see if the gold price will be sustainable to raise the average price of gold before they rise. Gold shares now seem to be convinced these higher levels will stay to lift the average gold price and translate into higher profits for the mines now and in the future. We do expect to see rises in the different gold and gold derivatives act like waves, favoring one then the next as this gold price reaches new heights. We continue to be long of both gold and gold shares (along with silver and silver shares)!
Whilst some of the demand for gold shares has been reduced by the E.T.F. demand for paper gold, today's action in the HUI shows gold shares are very much in the gold picture and will remain so. We will be issuing the next "Global Watch - The Gold Forecaster" shortly.
Our point and figure chart in the next issue points to $622 as the next gold price target!
Gold Breaks Above $509-510: $520-525 Next Likely Stop
Gold (spot) now trades just above the $509.20 peak from 1982 and is hitting records not see since 1980! Momentum is in firm command; any small dips are short-lived and have buyers pushing it to new highs nearly daily. We now see the momentum commanding a march up to $520-525. It will be at this point we will look for signs of a short-term top or a short-covering, speculators’ attempt to spike gold even higher to the $550 mark. Gold is making headlines around the world and grabbing the attention of new capital investments. Look for volatility to reign and support to hold strong around $500 and again around $475-480.
Silver Looking at $9
Silver is within striking distance of $9 an ounce. With $8.50 holding Tuesday’s morning selling, buyers pushed silver up to $8.76 before settling it at $8.70 in New York trading. There is not much stopping this market from testing $9 now in the short-term.
Any drops to strong support levels ($7.65-7.90/8) should be viewed as great opportunities to add with those riding this silver momentum higher looking to take profits as we trade near $9 or tightening stops near major supports.
HUI Near All-Time Record Highs – Breakout Near?
Recently, gold has been riding the momentum wave higher with equities acting considerably weaker. What is convincing is the HUI’s continual ticks just below all-time record levels. After leading gold and silver higher during Tuesday’s trade, metal equities made a sign of strength portending a likely breakout move higher in the coming days.
258.60 was reached in late 2003 before a few year range-bound market left the HUI in the 160-250 range, destroying the confidence of many bulls and shaking out many weak hands. Now with the gold bull in full command, we now see the odds favourable of a breakout in the HUI and metal equities occurring here at this time. 258.60 HUI is a key level to close above, and with gold now looking to break to $520-525, the HUI my see a large pop in the coming several days.
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This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Gold-Authentic Money / Julian D. W. Phillips, have based this document on information obtained from sources it believes to be reliable but which it has not independently verified; Gold-Authentic Money / Julian D. W. Phillips make no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Gold-Authentic Money / Julian D. W. Phillips only and are subject to change without notice. Gold-Authentic Money / Julian D. W. Phillips assume no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.
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-- Posted Wednesday, 7 December 2005 | Digg This Article
