21 June 2015

CelticGold Market Report 21st June 2015

Gold Technical Chart - 1 Year

Gold had a strong rally on Thursday and was able to post its second straight positive weekly close. The yellow metal surged above the $1,200 mark and is up almost 2% since Monday. 

Many analysts believe Gold’s increase this week was due to the uncertainty in Greece. It would seem that a comprise between Greek leaders and the EU is likely at some point this weekend or early next week. As result, going into next week it is unclear what direction Gold may take.

There continues to be a bearish sentiment towards Gold over the short term. We have seen some commentaries recently from Gold analysts who are suggesting that Gold could plummet below $1,000 before resuming its bull market and heading exponentially higher. 

The summer tends to be a slow period historically for Gold which has further convinced some market analysts that Gold is headed lower before it moves higher. With sentiment as poor as it is, it’s possible that Gold could be building a floor in the market and move higher this summer.

With the recovery in the EU and US continuing to dominate the news, Gold has shown  resiliency. In a video interview with Kitco, Mike McGlone, director of research for ETF securities, said that Gold is the only metal up in June. So we’ll see if Gold can produce a surprise summer rally and start to move higher from here.

Featured Gold Articles

In this weeks Gold update there are two articles that we wanted to share.  The first is from GoldSilverWorlds, which highlights 10 charts from the soon to be released 2015 edition of the “In Gold We Trust” report.

If you look at the second chart, it clearly shows that when viewed from a longer term horizon Gold has been an excellent asset to own regardless of the currency. The third chart is one of the most compelling and shows the Gold price is near an all time high in Japanese Yen.  

As the report explains, Japan has been the country with the most extreme monetary policy. Those who own Gold in Japan are preserving their purchasing power as the Yen is collapsing. The link is below.

Link to 10 Charts from in Gold we trust Report

The second article talks about what may be happening behind the scene with Gold at the COMEX between JPMorgan and the US Federal Reserve. The article is long and a bit complex but it is a fascinating look at the crisis that could be taking place in the physical Gold market.

If what the author says is true, than at some point the deficits in the physical Gold market will overwhelm the paper markets. This is another core fundamental reason to expect much higher Gold prices over the long term. This link to the full article is below.

Link to seekingalpha Article

Market Update for Silver

Silver Technical Chart - 1 Year

Silver ended its four week slump to close at $16.09 up about 1.3% for the week. Platinum hit a six year low this week falling below $1,100 an ounce. We mention this because it is suggesting to some analysts that deflation is still gaining the upper hand in the market, as platinum is considered more of an industrial precious metal.

In order for Silver to rally, demand will have to come from safe haven buying. So Gold will need to play a lead role in helping to propel Silver higher. Both Gold and Silver are showing resiliency in an environment of bearish sentiment. Even if prices dip lower in the coming weeks chances are high that the metals are in the final phase of this prolonged downturn.

The featured article for this weeks Silver update is about the extreme disconnect between open interest in Silver compared to available physical metal. When this resolves itself, Silver price only have one way to go and that is up. 

Author: celticgold.eu

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