CelticGold Market Report 7th July 2014
Gold finished the week at about $1321. The big news over the past couple of weeks for Gold has been it’s ability to hold it’s gains while also staging a bit of a follow through rally. This came despite the announcement of a good June jobs number for the US on Thursday.
In looking at the technical picture for Gold the next level of resistance stands at $1335 while support comes in at $1305, according to technician Jim Wyckoff. While it is still unclear whether this rally in Gold and Silver is the start of a new upward trend, a positive development has been the recent inflow into Gold ETF’s.
Zero Hedge recently reported that Gold ETF’s have seen the biggest inflows since September of 2012 and are at their highest in two months. This is all being accomplished during the summer months which historically tend to be a weak period for the metals. So the news is good.
Some analysts and prognosticators are beginning to come out and declare that the bottom is in for Gold. One these analysts is Larry Edelson. Mr. Edelson was one of the few who correctly called the correction in Gold over the last couple of years. Below is an article that he recently posted that outlines his views on Gold and Silver over the next few years.
One of the interesting comments he makes in the article is that Gold is not just a inflation hedge but more importantly a hedge against collapsing governments and geo-political risk. While a good case can be made that the bottom is in for Gold, keep in mind that the ride will likely be volatile along the way. The key level of $1400 is still a ways away so let’s see what Gold can accomplish over the next few weeks.
Money and Markets Article: Gold and Silvert Mining Shares...
One of the pieces that we wanted to include in this weeks update is a recent interview that Kitco conducted with Marc Faber on Gold. One of the main points he makes is that the Central Banks are brainwashing the public in fearing deflation. He makes the case that all of the monetary inflation is creating asset inflation which in turn is leading to price increases. He goes on say that long term no one will entrust paper money and believes that eventually even Central Bankers are going to personally own Gold. It is a good interview for Gold investors to listen to.
Marc Faber interview with Kitco
Market Update for Silver
Silver finished the week at about $21.13 and has posted some nice gains over the last month or so. According to Jim Wyckoff the next area of resistance is $21.86 while support comes in at $20.70.
Silver has been getting a lot of attention recently. As you can see from the chart that is provided in the article below, Silver has been the best performer of all the commodities during the month of June.
Outsider Club Article: Silver blows away others commodities in June
Silver has improved it’s technical picture significantly. In addition to demand because of it’s history as a monetary metal below is a mainstream media article that discusses it’s demand as a industrial metal as well. Silver’s role in new technologies will only likely increase which makes it’s investment appeal even more bullish, especially if physical shortages become a reality.
Marketwatch Article: Why Silver is outperforming Gold and isn't done yet
Lastly, we have posted articles to the CelticGold website in the past that deal with physical supply constraints in the Gold and Silver market. Below is an article that highlights the declining inventories from the Shanghai Futures Exchange. The article claims that Silver warehouse stocks have declined 82% in just 15 months.
This could have an impact on Silver prices over the next year or so and will be an interesting story to follow.
Srsrroccoreport article: Shanghai Silver Stocks fall to lowest level on record
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