Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19
US China War - Thucydides Trap and gold - 16th June 19
Gold Stocks Bull Upleg Mounting - 16th June 19
Gold Price Seasonal Trend Analysis - Video - 16th June 19
Fethiye Market Fruit, Veg, Spices and Turkish Delight Tourist Shopping - 16th June 19
US Dollar Gold Trend Analysis - 15th June 19
Gold Stocks “Launch” is in Line With Fundamentals - 15th June 19
The Rise of Silver and Major Economic Decline - 15th June 19
Fire Insurance Claims: What Are the Things a Fire Claim Adjuster Does? - 15th June 19
How To Find A Trustworthy Casino? - 15th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match - Video - 14th June 19
Gold and Silver, Precious Metals: T-Minus 3 Seconds To Liftoff! - 14th June 19
Silver Investing Trend Analysis - Video - 14th June 19
The American Dream Is Alive and Well - in China - 14th June 19
Keeping the Online Gaming Industry in Line - 14th June 19
How Acquisitions Affect Global Stocks - 14th June 19
Please Don’t Buy the Dip in Nvidia or Other Chip Stocks - 14th June 19
A Big Thing in Investor Education is Explainer Videos - 14th June 19
IRAN - The Next American War - 13th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match Contest - 13th June 19
Top Best VPN Services You Can Choose For Your iPhone - 13th June 19
Tory Leadership Contest Betting Markets Forecast - Betfair - 13th June 19
US Stock Market Setting Up A Pennant Formation - 13th June 19
Which Stocks Will Lead The Cannabis Rebound? - 13th June 19
The Privatization of US Indo-Pacific Vision - Project 2049, Armitage, Budget Ploys and Taiwan Nexus - 12th June 19
Gold Price Breaks to the Upside - 12th June 19
Top Publicly Traded Casino Company Stocks for 2019 - 12th June 19
Silver Investing Trend Analysis - 12th June 19
Why Blue-Chip Dividend Stocks Aren’t as Safe as You Think - 12th June 19
Technical Analysis Shows Aug/Sept Stock Market Top Pattern Should Form - 12th June 19
FTSE 100: A Top European Index - 12th June 19
Gold Surprise! - 11th June 19
How Forex Indicators are Getting Even More Attention in the Market? - 11th June 19
Stock Market Storm Clouds on the Horizon - 11th June 19
Is Your Financial Security Based On A Double Aberration? - 11th June 19
What If Stocks Are Wrong About Interest Rate Cuts? - 11th June 19
US House Prices Yield Curve, Debt, QE4EVER! - 11th June 19
Natural Gas Moves Into Basing Zone - 11th June 19
U.S. Dollar Stall is Good for Commodities - 11th June 19
Fed Running Out of Time and Conventional Weapons - 11th June 19
Trade Wars Propelling Stock Markets to New Highs - 11th June 19
Best Travel Bags for Summer Holidays 2019, Back Sling packs, water proof, money belt, tactical - 11th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Gold and Silver Correction Runs its Course, When Time's Up Prices Reverse

Commodities / Gold and Silver 2012 Jun 07, 2012 - 06:39 AM GMT

By: Peter_Degraaf

Commodities

Best Financial Markets Analysis ArticleThis weekly chart courtesy Stockcharts.com features the gold price rising within the blue channel and the Accumulation/Distribution line at the top. The green boxes show the historical connection between the gold price and the A/D line. Whenever the A/D line rises (as now), price usually follows. The fact that the A/D line has been moving up since the beginning of 2012 puts pressure on the gold price to 'get in step'.


"There can be no other criterion, no other standard than gold. Yes, gold which never changes, which can be turned into ingots bars, coins, which has no nationality and which is eternally and universally accepted as the unalterable fiduciary value par excellence" ...Charles Degaulle

Gold Seasonal 30-Years

This chart courtesy Dimitri Speck. It shows the seasonal tendencies for gold based on data going back to 1982. Quite often the gold price produces a low in June and rises from then into February.

"The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance." .... CICERO - 55 BC

Gold Miners Bullish Percent Index

Featured is the Bullish Percentage Index based on the Gold Miners Index ($GDM at Stockcharts), with the gold price at the top. Historically whenever this index turns up from below '30', it is matched by a rise in the price of gold that lasts several months.

Gold versus Financial Assets

This pie chart is courtesy Bullion Management Group Inc. It shows shows gold to be a tiny part of the world's investment holdings. The potential for investors to switch from other investment vehicles into gold is tremendous.

Dow/Gold 1998-2012

This chart courtesy Goldswitzerland.com shows the Dow Jones Industrial Average expressed in 'real money - gold.'

"The real cost of the state is the prosperity we do not see, the jobs that don't exist, the technologies to which we do not have access, the businesses that do not come into existence, and the bright future that is stolen from us. The state has looted us just as surely as a robber who enters our home at night and steals all that we love." ....Frederic Bastiat.

Silver

Featured is the weekly silver chart courtesy Stockcharts.com. Silver is noted for the large pennants that are produced time after time. One such pennant is being carved out at the present time. At the top of the chart is the Accumulation/Distribution (A/D) line. Historically whenever the A/D line rises, it pulls price up with it. For the past few months the A/D line has risen and silver has not yet followed. Unless one expects the A/D line to decline rapidly (no sign of that), there is now strong pressure on price to 'get in step'.

During the 1960's at the time when silver was removed from circulating coinage, the amount of silver stockpiled around the world was about 6.5 billion ounces. In 1980 the stockpiles of silver bullion were estimated at 2.5 billion ounces. Since then an estimated 13 billion ounces have been mined, while an estimated 15 billion ounces have been used up. Silver in most industrial applications is not yet valuable enough to be recovered for recycling. For decades the amount of silver that is mined has failed to meet the demand for silver. In the meantime the uses for silver continue to expand. Today, if just one billionaire decided to buy 1 billion dollars worth of silver, he would have a hard time getting his order filled. In the process this order would cause a massive price increase.

Silver COT

This chart courtesy Cotpricecharts.com shows the 'net short' position of commercial silver traders is at its lowest (14,000 compared to 15,000 last week), since December 2011. Silver was trading at 27.86 at that time, and during the following two months the price rose to 35.14.

Summary: In the history of civilization, there is not one country that escaped the destruction of its fiat currency, once monetary inflation became part of the process .....Not one!

Fundamentals are supporting the current bull market in the metals, as central banks are adding to the money supply at double digit rates. The technical indicators along with seasonal indicators are pointing to a resumption of the bull market, now that the correction that began in September 2011 has pretty well run its course. In the words of W.D. Gann "when time is up, price will reverse."

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 itiswell@cogeco.net , or visit his website at www.pdegraaf.com where you will find many long-term charts, as well as an interesting collection of Worthwhile Quotes that make for fascinating reading.

© 2012 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 http://www.MarketOracle.co.uk - 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