India Gold Demand Surges 450% and Bank of Russia Demand At 15 Year High!

Demand for gold continues to be robust and has indeed increased significantly in recent weeks despite gold’s most recent paper driven gold weakness.

Demand in China and India surged again and gold reserve diversification by the central bank of Russia hit a new record high in September as geopolitical tensions rose. 

The seemingly insatiable appetite of the growing Indian middle class for gold is causing the government in India to again consider imposing sanctions on the importing of gold.

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Gold and Silver Weekly Futures Swing Trading Instructions October 16, 2014

 

Signals are automatically generated by integrating electronic weekly statistics with proprietary algorithms.

 

GOLD

WEEKLY MOVING AVERAGES

The December gold futures contract closed at 1239. The market closing below the 9 day MA (1240) is confirmation that the weekly trend momentum is bearish. A close above the 9 day MA would negate the weekly bearish short-term trend to neutral.

WEEKLY MOMENTUM INDICATOR

With the market closing above the VC Weekly Price Momentum Indicator of 1237, it confirms that the price momentum is bullish. A close below the VC Weekly, it would negate the bullish signal to neutral.

WEEKLY PRICE INDICATOR

Cover short on corrections at the 1224 – 1209  levels and go long on a weekly reversal stop. If long, use the 1209 level as a Stop Close Only and Good Till Cancelled order. Look to take some profits on longs, as we reach the 1252 – 1265 levels during the week.

 

SILVER

WEEKLY MOVING AVERAGES

The December silver futures contract closed at 17.27. The market closing below the 9 day MA (18.20) is confirmation that the weekly trend momentum is bearish. A close above the 9 day MA would negate the weekly bearish short-term trend to neutral.

WEEKLY MOMENTUM INDICATOR

With the market closing below the VC Weekly Price Momentum Indicator of 17.37, it confirms that the price momentum is bearish. A close above the VC Weekly, it would negate the bearish signal to neutral.

WEEKLY PRICE INDICATOR

Cover short on corrections at the 16.92 – 16.57 levels and go long on a weekly reversal stop. If long, use the 16.57 level as a Stop Close Only and Good Till Cancelled order. Look to take some profits on longs, as we reach the 17.72 – 18.17 levels during the week.

 

 

The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any futures or options contracts.

 

TRADING DERIVATIVES, FINANCIAL INSTRUMENTS AND PRECIOUS METALS INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Rick Rule – The Case For Gold: “The Good Old Days”

In a recent interview, Rick Rule of Sprott Asset Management made a strong case that this bear market may be looked back on as “the good old days” in terms of the golden opportunity to invest in the precious metals sector.

Rule said there has been “carnage” in the precious metals markets over the past three weeks, adding to “slow motion” carnage since 2012. He said it is “Difficult for people to see benefit in this type of carnage.” However, he argued, “Three or four years from now, we’ll look back and describe these as the good old days.”

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Gold and Silver Weekly Futures Swing Trading Instructions – October 10, 2014

Signals are automatically generated by integrating electronic weekly statistics with proprietary algorithms.

 

GOLD

WEEKLY MOVING AVERAGES

The December gold futures contract closed at 1223. The market closing below the 9 day MA (1247) is confirmation that the weekly trend momentum is bearish. A close above the 9 day MA would negate the weekly bearish short-term trend to neutral.

WEEKLY MOMENTUM INDICATOR

With the market closing above the VC Weekly Price Momentum Indicator of 1213, it confirms that the price momentum is bullish. A close below the VC Weekly, it would negate the bullish signal to neutral.

WEEKLY PRICE INDICATOR

Cover short on corrections at the 1193 – 1163  levels and go long on a weekly reversal stop. If long, use the 1163 level as a Stop Close Only and Good Till Cancelled order. Look to take some profits on longs, as we reach the 1243 -1.264 levels during the week.

 

 

SILVER

WEEKLY MOVING AVERAGES

The December silver futures contract closed at 17.39. The market closing below the 9 day MA (18.46) is confirmation that the weekly trend momentum is bearish. A close above the 9 day MA would negate the weekly bearish short-term trend to neutral.

WEEKLY MOMENTUM INDICATOR

With the market closing above the VC Weekly Price Momentum Indicator of 17.26, it confirms that the price momentum is bullish. A close below the VC Weekly, it would negate the bullish signal to neutral.

WEEKLY PRICE INDICATOR

Cover short on corrections at the 16.79 – 16.20  levels and go long on a weekly reversal stop. If long, use the 16.20 level as a Stop Close Only and Good Till Cancelled order. Look to take some profits on longs, as we reach the 17.85 – 18.32 levels during the week.

The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any futures or options contracts.

 

TRADING DERIVATIVES, FINANCIAL INSTRUMENTS AND PRECIOUS METALS INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

China’s Golden Plans for a New Reserve Currency

In a recent interview, Stephen Leeb, founder of the Leeb Group, discussed what he believes are China’s plans to buy more gold and make the yuan the world’s reserve currency.

Leeb said that although gold is declining, “People that see what’s happening in the world, especially the Chinese, are getting a lot more serious about” gold. They are, he said, “Determined to get gold, [and are] in a hurry to get gold.”

Xi Jinping, the General Secretary of the Central Committee, and Premier Li Kequiang, Leeb said, “Have done a remarkable job.” Although they have only been in power less than two years, they have “really addressed [corruption] and attacked it.” They “have really made China a much better place to do business….You don’t have to worry about someone coming along with a bigger bribe” anymore.

Leeb also pointed out that “Two years ago, everyone was saying China was in the midst of this massive real estate bubble that was going to crash the economy. Well, the bubble has deflated and the economy is still growing at 7.5%.”

For the future, Leeb said, “All China wants to do…is to control their fate.” They are setting up free trade zones in which gold is being traded in yuan. Soon, Leeb said, “gold is going to be traded worldwide in yuan….That’s the way the world is going.”

Why are the Chinese focused on gold? Leeb said, “In order for the Chinese to feel secure in what they are doing, they have to feel that they have control of their monetary policy….One way to do that is to…denominate their currency or at least make it partially exchangeable for gold.” If the Chinese make the yuan convertible to gold, he said, “It makes their currency the leading candidate for reserve currency status.”

Leeb believes gold will test lows at $1,180 and may put in a double or triple bottom, and then “will just blast off.” He said gold may fall to $1,175, with “people jumping out of windows, and then the next thing you know you are truly off to the races.”

Leeb believes the partial recovery in the United States will push gold lower, and push the Chinese more into the market.

“They’re thinking for the next ten years,” Leeb said. “One vital tool for controlling your economic destiny is if you have the reserve currency.” One way, he argued, to speed up the transition to the yuan as the global reserve currency is to make the yuan exchangeable for gold. If a state in Middle East is selling oil, they will be far more likely to want to exchange it for a currency tied to gold than to a currency that can be printed. “Sovereigns in the Middle East,” Leeb said, “love gold….When they see what the US is doing, they love it even more.”

Leeb argued that most people do not realize how important it is that Russia and China aren’t trading in dollars. “They are trading in rubles and yuan.” China is setting up a new future that will not be based on the US dollar. He predicts that Germany, if something happens in the Euro zone, or Japan, whose leader is having an unconditional meeting with Chinese leaders, “will be first to throw in the towel and drop the US dollar as a reserve currency and start trading in yuan.”

China is already making closer ties with Germany, Japan and India. China is investing heavily in Indian infrastructure. China has the money to invest, while the US “has nothing to give.”

The key, Leeb argued, is to “control the monetary levers….One way to control those monetary levers is to have your currency the top of the heap….China is ready to take a very, very big step in that direction.” He believes China will bid for more gold. “We are getting closer and closer to what is going to make past bull markets in gold look very, very tame.”

Leeb said, “China is the key here.” China wants control of its destiny and the only way to control their destiny is to have the reserve currency, and only way to do that is to tie the yuan to gold. Leeb said, “You have to own this metal.”

The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any futures or options contracts.

Gold and Silver Weekly Futures Swing Trading Instructions October 3, 2014

Signals are automatically generated by inte grating electronic weekly statistics with proprietary algorithms.

GOLD

WEEKLY MOVING AVERAGES
The December gold futures contract closed at 1191. The market closing below the 50 day MA (1266) is confirmation that the weekly trend momentum is bearish. A close above the 9 day MA would negate the weekly bearish short-term trend to neutral.

WEEKLY MOMENTUM INDICATOR
With the market closing below the VC Weekly Price Momentum Indicator of 1199, it confirms that the price momentum is bearish. A close above the VC Weekly, it would negate the bearish signal to neutral.

WEEKLY PRICE INDICATOR
Cover short on corrections at the 1182 – 1173 levels and go long on a weekly reversal stop. If long, use the 1173 level as a Stop Close Only and Good Till Cancelled order. Look to take some profits on longs, as we reach the 1208 – 1225 levels during the week.

SILVER

WEEKLY MOVING AVERAGES
The December silver futures contract closed at 16.84. The market closing below the 50 day MA (20.12) is confirmation that the weekly trend momentum is bearish. A close above the 50 day MA would negate the weekly bearish short-term trend to neutral.

WEEKLY MOMENTUM INDICATOR
With the market closing below the VC Weekly Price Momentum Indicator of 17.04, it confirms that the price momentum is bearish. A close above the VC Weekly, it would negate the bearish signal to neutral.

WEEKLY PRICE INDICATOR
Cover short on corrections at the 16.44 – 16.04 levels and go long on a weekly reversal stop. If long, use the 16.04 level as a Stop Close Only and Good Till Cancelled order. Look to take some profits on longs, as we reach the 17.44 – 18.04 levels during the week.

The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any futures or options contracts.

TRADING DERIVATIVES, FINANCIAL INSTRUMENTS AND PRECIOUS METALS INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

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