Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Coronavirus Pandemic Vaccines Indicator Current State - 3rd Mar 21
AI Tech Stocks Investing 2021 Buy Ratings, Levels and Valuations Explained - 3rd Mar 21
Stock Market Bull Trend in Jeopardy - 3rd Mar 21
New Global Reserve Currency? - 3rd Mar 21
Gold To Monetary Base Ratio Says No Hyperinflation - 3rd Mar 21
US Fed Grilled about Its Unsound Currency, Digital Currency Schemes - 3rd Mar 21
The Case Against Inflation - 3rd Mar 21
How to Start Crypto Mining Bitcoins, Ethereum with Your Desktop PC, Laptop with NiceHash - 3rd Mar 21
AI Tech Stocks Investing Portfolio Buying Levels and Valuations 2021 Explained - 2nd Mar 21
There’s A “Chip” Shortage: And TSMC Holds All The Cards - 2nd Mar 21
Why now might be a good time to buy gold and gold juniors - 2nd Mar 21
Silver Is Close To Something Big - 2nd Mar 21
Bitcoin: Let's Put 2 Heart-Pounding Price Drops into Perspective - 2nd Mar 21
Gold Stocks Spring Rally 2021 - 2nd Mar 21
US Housing Market Trend Forecast 2021 - 2nd Mar 21
Covid-19 Vaccinations US House Prices Trend Indicator 2021 - 2nd Mar 21
How blockchain technology will change the online casino - 2nd Mar 21
How Much PC RAM Memory is Good in 2021, 16gb, 32gb or 64gb? - 2nd Mar 21
US Housing Market House Prices Momentum Analysis - 26th Feb 21
FOMC Minutes Disappoint Gold Bulls - 26th Feb 21
Kiss of Life for Gold - 26th Feb 21
Congress May Increase The Moral Hazard Building In The Stock Market - 26th Feb 21
The “Oil Of The Future” Is Set To Soar In 2021 - 26th Feb 21
The Everything Stock Market Rally Continues - 25th Feb 21
Vaccine inequality: A new beginning or another missed opportunity? - 25th Feb 21
What's Next Move For Silver, Gold? Follow US Treasuries and Commodities To Find Out - 25th Feb 21
Warren Buffett Buys a Copper Stock! - 25th Feb 21
Work From Home Inflationary US House Prices BOOM! - 25th Feb 21
Man Takes First Steps Towards Colonising Mars - Nasa Perseverance Rover in Jezero Crater - 25th Feb 21
Musk, Bezos And Cook Are Rushing To Lock In New Lithium Supply - 25th Feb 21
US Debt and Yield Curve (Spread between 2 year and 10 year US bonds) - 24th Feb 21
Should You Buy a Landrover Discovery Sport in 2021? - 24th Feb 21
US Housing Market 2021 and the Inflation Mega-trend - QE4EVER! - 24th Feb 21
M&A Most Commonly Used Software - 24th Feb 21
Is More Stock Market Correction Needed? - 24th Feb 21
VUZE XR Camera 180 3D VR Example Footage Video Image quality - 24th Feb 21
How to Protect Your Positions From A Stock Market Sell-Off Using Options - 24th Feb 21
Why Isn’t Retail Demand for Silver Pushing Up Prices? - 24th Feb 21
2 Stocks That Could Win Big In The Trillion Dollar Battery War - 24th Feb 21
US Economic Trends - GDP, Inflation and Unemployment Impact on House Prices 2021 - 23rd Feb 21
Why the Sky Is Not Falling in Precious Metals - 23rd Feb 21
7 Things Every Businessman Should Know - 23rd Feb 21
For Stocks, has the “Rational Bubble” Popped? - 23rd Feb 21
Will Biden Overheat the Economy and Gold? - 23rd Feb 21
Precious Metals Under Seige? - 23rd Feb 21
US House Prices Trend Forecast Review - 23rd Feb 21
Lithium Prices Soar As Tesla, Apple And Google Fight For Supply - 23rd Feb 21
Stock Markets Discounting Post Covid Economic Boom - 22nd Feb 21
Economics Is Why Vaccination Is So Hard - 22nd Feb 21
Pivotal Session In Stocks Bull Bear Battle - 22nd Feb 21
Gold’s Downtrend: Is This Just the Beginning? - 22nd Feb 21
The Most Exciting Commodities Play Of 2021? - 22nd Feb 21
How to Test NEW and Used GPU, and Benchmark to Make sure it is Working Properly - 22nd Feb 21
US House Prices Vaccinations Indicator - 21st Feb 21
S&P 500 Correction – No Need to Hold Onto Your Hat - 21st Feb 21
Gold Setting Up Major Bottom So Could We See A Breakout Rally Begin Soon? - 21st Feb 21
Owning Real Assets Amid Surreal Financial Markets - 21st Feb 21
Great Investment Ideas For 2021 - 21st Feb 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold and Silver Are At the Threshold of Another Bullish Rally

Commodities / Gold and Silver 2011 Mar 21, 2011 - 01:21 PM GMT

By: Peter_Degraaf


Diamond Rated - Best Financial Markets Analysis ArticleThis chart courtesy Federal Reserve Bank of St. Louis, shows the Monetary Base is rising exponentially. The current total is 2.35 trillion dollars. The increase since Jan 1/11 is 15.7%. The annualized increase is almost 65%! This increase is providing fuel for gold and silver to rise! The bankers of the world are concerned about social unrest and unemployment. They will continue to inflate (in the mistaken belief that this will solve the social problems), while pushing the effect (hyperinflation) as far into the future as possible.

This chart, also courtesy Federal Reserve Bank of St. Louis shows US government debt is also growing exponentially. Eventually this causes the protectors against monetary inflation (Platinum, Gold, Palladium, Silver etc.) to rise exponentially as well.

This chart courtesy shows the US CPI is beginning to show the effects of Mr. Obama’s spending and the Fed’s money printing. The government likes to strip away food and energy from this index and that’s great if you don’t eat, nor heat your home. During the late 1970’s when the CPI began to rise like this, people started to become interested in protecting their net worth by buying gold and silver. They will do the same thing this time.

Featured is the weekly US dollar index chart. Price has just closed below the 3 year old uptrend line. Unless the dollar price can get back above the purple arrow during this coming week, a quick descent to the 71 target is likely to occur. See next chart for more information on the US dollar index.

Featured is the comparison chart between the US dollar index (bottom of the chart) and the gold price (black line at the top of the chart). By isolating those periods during the past four years whenever the dollar fell, and comparing those periods to the performance of gold bullion, we arrive at the conclusion that if the dollar follows through on Friday’s drop, it will provide fuel for gold to continue its rise.

Featured is the daily gold chart. The uptrend is well defined within the blue channel. Price found support at the rising 50DMA and a breakout at the blue arrow will mark the beginning of the next rally. The RSI at top of the chart is turning up from the ‘50’ level with room to rise. The 50DMA is in positive alignment to the 200DMA (green oval), while both are rising. This is bullish action.

This chart courtesy shows the number of ‘net short’ positions in gold contracts to have been reduced from 247,000 last week to 220,000 this past week. This is bullish news as it indicates that the commercial traders think the gold price will rise. This is the sharpest one week drop in the ‘net short’ total in several months.

 From 1834 to 1934 the USA was on a gold standard. The economy was able to make huge advances. Consumer prices fell, except during brief periods of war. Gold held steady during this period.

Featured is the daily bar chart for the Sprott Gold Trust. Price is carving out a bullish Advancing Right Angled Triangle (ARAT). The RSI is finding support at the ‘50’ level and the 50DMA is in positive alignment to the 200D (green oval), while both are in uptrend. A breakout at the blue arrow has a target at 16.00.

Featured is the gold price in Canadian dollars. Price is carving out a bullish pennant. A breakout at the blue arrow sets up a challenge to the previous top at 14.50.

Featured is the daily silver chart. For several days in the daily report I’ve drawn attention to the fact that silver is carving out a bullish flag pattern. A breakout at the blue arrow has a target at 45.00. The RSI is ready to turn up from ‘55’ and the MACD is approaching an area of support. The 50DMA is in positive alignment to the 200DMA and both have been rising since September.

Summary: Gold and silver are at the threshold of another bullish rally within the overall uptrend. Feel free to check back on some of my previous articles found in the archives.

Happy trading!

By Peter Degraaf

Peter Degraaf is an on-line stock trader with over 50 years of investing experience. He issues a weekend report on the markets for his many subscribers. For a sample issue send him an E-mail at , or visit his website at where you will find many long-term charts, as well as an interesting collection of Worthwhile Quotes that make for fascinating reading.

© 2011 Copyright Peter Degraaf - All Rights Reserved

DISCLAIMER: Please do your own due diligence. I am NOT responsible for your trading decisions.

Peter Degraaf Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules