Filed under: Trader Dan Norcini
Dear CIGAs,
Considering the fact that today is the end of the month and that during such times, many markets that have been in uptrends see some price weakness as traders book profits, gold, and silver for that matter, displayed impressive strength as buyers went to work. One can only suspect that December should start off very well for the fans of both metals based on what we saw today as overhead resistance levels were shattered and both markets appear to have broken out of recent consolidation patterns and look poised to move higher.
If that wasn’t enough, Gold priced in terms of the Japanese Yen made a 27 year high at today. When priced in terms of the British Pound and the Euro, it set new lifetime highs respectively. It also is within a few francs of setting a lifetime high in terms of the Swiss Franc.
Clearly unrest regarding the sovereign debt crises of some of the Euro nations is bringing strong demand from the continent into gold and silver for that matter as silver made a new record high when priced in terms of the Euro.
One can easily make the case that a crisis of confidence in the current monetary system is manifesting itself in no uncertain terms. Seeing that the fiat system relies on the confidence of the investing public to support it, where does this now leave the global investment community? Bonds may be moving higher as a safe haven but they are a fool’s charade, a mirage, that will leave those who chase them forlorn and broken. When all the glamour is swept aside, they are nothing more than mere IOU’s from nations who have spent themselves into a black hole.
Bonds look to me like they are at a crossroads here. The long bond has moved back up to retest the former broken support level near 129^15. That level is serving as resistance now. If they fall back away from this level it will bring in additional selling and push them back down towards 125. If they can muster a close back above this level, they will have once again managed to snatch victory from the jaws of defeat. That is the reason it is difficult to be too aggressive towards these things. There are so many undercurrents that are impacting their price movement at this time.
The Dollar continues trekking merrily higher and it is benefiting from continued woes regarding the various nations that are having problems in the EU. It looks like it has a shot at moving towards 83.50 where it should attract some rather strong selling even with the current sad state of the European monetary union. As stated in my recent radio interview, all of these fiat currencies have their own particular set of problems and that is why gold is divorcing itself from its former nearly tic by tic inverse movement with the Dollar. The yellow metal is trading as a currency in its own stead and has pretty much been ignoring the Dollar of late.
I do not see much in the way of overhead resistance to Silver until it nears 28.90. If it closes above that level, it will run to $30 in short order.
The HUI needs a closing print above 557 to encourage additional buying and to give it a decent shot at challenging the 580 level. Many individual companies within the mining sector are going to show some impressive profits come reporting time.
Crude oil looks like it has established a pretty solid floor near the $80 barrel level. It appears to be attempting to “grind higher” on the weekly price chart.
DAN'S CHART:
http://jsmineset.com/wp-content/uploads/2010/11/November3010Gold.pdf
Considering the fact that today is the end of the month and that during such times, many markets that have been in uptrends see some price weakness as traders book profits, gold, and silver for that matter, displayed impressive strength as buyers went to work. One can only suspect that December should start off very well for the fans of both metals based on what we saw today as overhead resistance levels were shattered and both markets appear to have broken out of recent consolidation patterns and look poised to move higher.
If that wasn’t enough, Gold priced in terms of the Japanese Yen made a 27 year high at today. When priced in terms of the British Pound and the Euro, it set new lifetime highs respectively. It also is within a few francs of setting a lifetime high in terms of the Swiss Franc.
Clearly unrest regarding the sovereign debt crises of some of the Euro nations is bringing strong demand from the continent into gold and silver for that matter as silver made a new record high when priced in terms of the Euro.
One can easily make the case that a crisis of confidence in the current monetary system is manifesting itself in no uncertain terms. Seeing that the fiat system relies on the confidence of the investing public to support it, where does this now leave the global investment community? Bonds may be moving higher as a safe haven but they are a fool’s charade, a mirage, that will leave those who chase them forlorn and broken. When all the glamour is swept aside, they are nothing more than mere IOU’s from nations who have spent themselves into a black hole.
Bonds look to me like they are at a crossroads here. The long bond has moved back up to retest the former broken support level near 129^15. That level is serving as resistance now. If they fall back away from this level it will bring in additional selling and push them back down towards 125. If they can muster a close back above this level, they will have once again managed to snatch victory from the jaws of defeat. That is the reason it is difficult to be too aggressive towards these things. There are so many undercurrents that are impacting their price movement at this time.
The Dollar continues trekking merrily higher and it is benefiting from continued woes regarding the various nations that are having problems in the EU. It looks like it has a shot at moving towards 83.50 where it should attract some rather strong selling even with the current sad state of the European monetary union. As stated in my recent radio interview, all of these fiat currencies have their own particular set of problems and that is why gold is divorcing itself from its former nearly tic by tic inverse movement with the Dollar. The yellow metal is trading as a currency in its own stead and has pretty much been ignoring the Dollar of late.
I do not see much in the way of overhead resistance to Silver until it nears 28.90. If it closes above that level, it will run to $30 in short order.
The HUI needs a closing print above 557 to encourage additional buying and to give it a decent shot at challenging the 580 level. Many individual companies within the mining sector are going to show some impressive profits come reporting time.
Crude oil looks like it has established a pretty solid floor near the $80 barrel level. It appears to be attempting to “grind higher” on the weekly price chart.
DAN'S CHART:
http://jsmineset.com/wp-content/uploads/2010/11/November3010Gold.pdf
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