15 March 2015

CelticGold Market Report 15th March 2015

Technical Gold Chart - 1 Year

Gold prices have been in battle right at the $1150 level which is providing some support for the yellow metal. The big news over the last week has been the surging US Dollar which has hit a 12 year high. The Dollar strength has proven so far to be a formidable force for Gold prices. 

Despite the losses this week, Gold has exhibited some resiliency to hold within the existing band of support. Crude oil lost 4% on Friday and many other commodities are also struggling. The next real key area of support for Gold comes in at $1130, which is the 2014 low. As of now there is a good chance that $1130 will hold. The next key area of resistance come in at about $1180.

The key event next week is the Federal Reserve open market committee meeting. All eyes will be on these “masters of finance” to see what they have to say about the global economy and interest rates. As we have mentioned, the short term movements in Gold and Silver are difficult to forecast right now. The trend for the metals does look a bit bearish, however it does appear that we are approaching a bottom. 

The Whole Structure of the Gold Market is Changing 

Over the next few months it could be a bumpy ride for Gold and Silver investors. However, the entire structure of the Gold market is changing which is very exciting. In a recent episode of the Keiser Report, Max interviewed precious metals expert Ned Naylor-Leyland. In the interview they discuss some the important developments taking place in the market. 

One of the more interesting developments is the new Chinese Gold fix that is likely coming this year. According to Ned Naylor-Leyland, this new trading platform will provide a proper price discovery mechanism for Gold. Which is something that has been lacking in the market.

Another interesting point that is raised is that official published Chinese Gold holdings are said to be about 1,000 tones. However, according to Mr. Keiser, China’s Gold holdings may be more like 6,000-7,000 tones. Eventually, the whole Gold trading scam is going to be exposed and when it is, Gold will trade at its true price which is much higher.

The link to the Keiser Report is below. Fast forward to minute 15.00 to watch the full interview. 

Keiser Report

China International Payment System 

The BRICS development bank and the Chinese Gold fix are signs that dramatic changes are coming to the global currency markets. The US Dollar’s influence is likely coming to an end over the next several years. A recent article in ZeroHedge reported on  a new Chinese International payment systems or SWIFT alternative that will serve to process cross-boarder yuan transactions and may be launched by September or October. (Source: ZeroHedge 2015 March 9th)

According to an article in Business Insider, Britain has become the first Western nation to apply for membership in the proposed Chinese led Asian Regional Bank. Twenty-one other governments including India, New Zealand and Thailand have said they want to join. (Source: Business Insider 2015 March 13th)

A new movement has begun and while the effects on the global financial system may take years to materialize, the groundwork is being laid for a likely shift in power. The transition will be highly volatile with the biggest impact seen on the currency markets. This is why it is good to own Gold while it is still available and while it is still valuable when priced in currency units.

 

Market Update for Silver

Technical Silver Chart -1 Year

The next key support level for Silver comes in at about $15.00, while resistance is at $16.00. The catalyst for higher Silver prices will be rising Gold prices. In a deflationary environment, Gold will be the leader for Silver to follow.

With that said, Silver remains to be one of the best duel threats. Not only is it a safe haven asset but it is also one of the best speculative investments of any asset class out there. All of the fundamentals point to much higher prices in the future. 

Silver investors must be willing to endure the high volatility that comes with investing in the metal. Having a long term view of your Silver holdings is the best way to maximize the potential that Silver has as a speculation.

Author: celticgold.eu

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