The Gold Forecast Weekend Review 01.20.2011

Gold:we spoke about the real indication of a quickly changing market sentiment. We saw record sales in physical gold from Hong Kong to China and over 85,000 ounces of the United States mint gold coins sold in the first 12 days of January. This incredible accumulation of physical gold was indicative of broad investor sentiment, tipping toward renewed interest in the precious metals markets.

Although on Friday of last week I had genuine concerns about a possible correction, my daily subscribers know that this sentiment changed on Sunday and Monday of this week and were able to stay positioned according to my market advice.
Typically at hard Fibonacci retracement levels there is a significant opportunity for some type of correction. However, in a super bull rally the precious metals markets have a tendency to consolidate, trade sideways and then resume their upward ascent. Such would be the underlying bias, as we saw both gold and silver trade substantially higher throughout the week.

As we continue to watch the precious metals appreciate in value during this first rally of 2012 I am reminded of past explosive upside moves that were evident last year but of course were absent during this multi-month correction. As most of the world is currently in the heart of the winter season, this recent rally provides some well needed sunshine.

With gold trading at a five-week high and seeing significant gains, coupled with the explosive breakout in silver prices today, we can rest assured that 2012's first rally not only was forewarned as we look at physical demand growing, but is also indicative of the onset of a rally with more to come.

GOLD AND SILVER:

On a technical basis I am glad to report that both gold and silver managed to trade and break above the resistance areas I initially had believed would be a strong candidate for an area in which we would see a correction.

Trading well above 1645, gold's significant week's price advances come on the heels of record and robust physical buying towards the beginning of the week.

Silver also showed its resilience with its incredible explosive upside move in today's trading activity. Targeting 31.80 as a significant resistance level, silver traded through that price point like the proverbial hot knife through butter. What we are witnessing is similar to the robust extended super bullish rallies we saw in precious metals last year. That is to say that rather than price/advance/correction, price/advance/correction, we get a price advance then consolidation (the market trading sideways), before returning to a bullish rally posture. This type of trading activity can be signaling higher prices to come and a return to the robust rally experience last year.

Category:

News & Politics

Tags:

• gold news
• gold and Elliot wave
• gold and finance
• finance
• economy. News
• Finance Business
• gold
• technical charys
• gold and candlesticks

[sidkings]

Looks exciting forsilver. It reminds of the energy and buzz of Feb 2011. Lets hope there arent any surprise smackdowns....