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
Try The “Compounding Capital Gains” Strategy Today - 26th Oct 20
UK Coronavirus Broken Test and Trace System, 5 Days for Covid-19 Results! - 26th Oct 20
How the Coronavirus is Exacerbating Global Inequality, Hunger - 26th Oct 20
The Top Gold Stock for 2021 - 26th Oct 20
Corporate Earnings Season: Here's What Stock Investors Need to Know - 25th Oct 20
�� Halloween 2020 TESCO Supermarkes Shoppers Covid Panic Buying! �� - 25th Oct 20
Three Unstoppable Forces Set to Drive Silver Prices - 25th Oct 20
Car Insurance And Insurance Claims and Options - 25th Oct 20
Best Pressure Washer Review - Karcher K7 Full Control Unboxing - 25th Oct 20
Further Gold Price Pressure as the USDX Is About to Rally - 23rd Oct 20
Nasdaq Retests 11,735 Support - 23rd Oct 20
America’s Political and Financial Institutions Are Broken - 23rd Oct 20
Sayonara U.S.A. - 23rd Oct 20
Economic Contractions Overshadow ASEAN-6 Recovery - 23rd Oct 20
Doji Clusters Show Clear Support Ranges for Stock Market S&P500 Index - 23rd Oct 20
Silver Market - 22nd Oct 20
Goldman Sachs Likes Silver; Trump Wants Even More Stimulus - 22nd Oct 20
Hacking Wall Street to Close the Wealth Gap - 22nd Oct 20
Natural Gas/UNG Stepping GAP Patterns Suggest Pending Upside Breakout - 22nd Oct 20 -
NVIDIA CANCELS RTX 3070 16b RTX 3080 20gb GPU's Due to GDDR6X Memory Supply Issues - 22nd Oct 20
Zafira B Leaking Water Under Car - 22nd Oct 20
The Copper/Gold Ratio Would Change the Macro - 21st Oct 20
Are We Entering Stagflation That Will Boost Gold Price - 21st Oct 20
Crude Oil Price Stalls In Resistance Zone - 21st Oct 20
High-Profile Billionaire Gives Urgent Message to Stock Investors - 21st Oct 20
What's it Like to be a Budgie - Unique in a Cage 4K VR 360 - 21st Oct 20
Auto Trading: A Beginner Guide to Automation in Forex - 21st Oct 20
Gold Price Trend Forecast into 2021, Is Intel Dying?, Can Trump Win 2020? - 20th Oct 20
Gold Asks Where Is The Inflation - 20th Oct 20
Last Chance for this FREE Online Trading Course Worth $129 value - 20th Oct 20
More Short-term Stock Market Weakness Ahead - 20th Oct 20
Dell S3220DGF 32 Inch Curved Gaming Monitor Unboxing and Stand Assembly and Range of Movement - 20th Oct 20
Best Retail POS Software In Australia - 20th Oct 20
From Recession to an Ever-Deeper One - 19th Oct 20
Wales Closes Border With England, Stranded Motorists on Severn Bridge? Covid-19 Police Road Blocks - 19th Oct 20
Commodity Bull Market Cycle Starts with Euro and Dollar Trend Changes - 19th Oct 20
Stock Market Melt-Up Triggered a Short Squeeze In The NASDAQ and a Utilities Breakout - 19th Oct 20
Silver is Like Gold on Steroids - 19th Oct 20
Countdown to Election Mediocrity: Why Gold and Silver Can Protect Your Wealth - 19th Oct 20
“Hypergrowth” Is Spilling Into the Stock Market Like Never Before - 19th Oct 20
Is Oculus Quest 2 Good Upgrade for Samsung Gear VR Users? - 19th Oct 20
Low US Dollar Risky for Gold - 17th Oct 20
US 2020 Election: Are American's ready for Trump 2nd Term Twilight Zone Presidency? - 17th Oct 20
Custom Ryzen 5950x, 5900x, 5800x , RTX 3080, 3070 64gb DDR4 Gaming PC System Build Specs - 17th Oct 20
Gold Jumps above $1,900 Again - 16th Oct 20
US Economic Recovery Is in Need of Some Rescue - 16th Oct 20
Why You Should Focus on Growth Stocks Today - 16th Oct 20
Why Now is BEST Time to Upgrade Your PC System for Years - Ryzen 5000 CPUs, Nvidia RTX 3000 GPU's - 16th Oct 20
Beware of Trump’s October (November?) Election Surprise - 15th Oct 20
Stock Market SPY Retesting Critical Resistance From Fibonacci Price Amplitude Arc - 15th Oct 20
Fed Chairman Begs Congress to Stimulate Beleaguered US Economy - 15th Oct 20
Is Gold Market Going Back Into the 1970s? - 15th Oct 20
Things you Should know before Trade Cryptos - 15th Oct 20
Gold and Silver Price Ready For Another Rally Attempt - 14th Oct 20
Do Low Interest Rates Mean Higher Stocks? Not so Fast… - 14th Oct 20
US Debt Is Going Up but Leaving GDP Behind - 14th Oct 20
Dell S3220DGF 31.5 Inch VA Gaming Monitor Amazon Prime Day Bargain Price! But WIll it Get Delivered? - 14th Oct 20
Karcher K7 Pressure Washer Amazon Prime Day Bargain 51% Discount! - 14th Oct 20
Top Strategies Day Traders Adopt - 14th Oct 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Gold And Silver - What Moved Price? Bab el-Mandeb And Uranus Square Pluto. What?!

Commodities / Gold and Silver 2015 Mar 28, 2015 - 08:38 PM GMT

By: Michael_Noonan

Commodities

So many "experts" have so much to say in correlating the current prices for gold and silver with factors like how much gold China and Russia have been accumulating, the shortages of and demand for physical PMs, hypothecating, rehypothocating [aka stealing] of gold by Western Central Banks, the record sales for gold and silver coins, world-wide, etc, etc, etc.

Yet, with all of the pinpoint accuracy in reporting, backed by statistics, graphs, charts with arrows drawn in to show the next direction [always wrong] for PMs, there has been little demonstrable cause and effect relations between events and prices. We have two.


The easy one first, yet the one hardest for most people to accept: planetary influences on the real world, found in the expression, "As above, so below." What happens above, in the planets, is manifested on earth. We do know for a fact that W D Gann was an astute astrologer, and he incorporated planetary movements very successfully in his work. "Wheels within wheels," as he would say. Planetary orbits within each other relative to earth.

Now, before dismissing this notion out of hand, consider this: Most people in the world believe a Federal Reserve Note [FRN], is actually a dollar. If you are one of the many who happens to believe this massive lie as a fact, you have your facts wrong and should not be so judgmental of other facts. As an aside, a Federal Reserve Note is a debt instrument issued by the U S Treasury. That is a proven and known fact. Where it breaks down is in the mistaken belief that debt is money. Debt is the opposite of money, but this is not an article on what is and what is not money.

The lawful definition of a dollar is found in the Coinage Act of 1793, Section 20. This Act has never been overturned and is recognized as law to this day. It is the corporate Federal government that chooses to ignore the law and pretend Federal Reserve debt is money.

Moving on.

A Uranus square Pluto conjunction occurs when the planets are 90 degrees apart from each other. From 2012 through 2015, Uranus has squared Pluto seven times, the last on 18 March, a few weeks ago. What happened to gold during these events? When the Sun transits [moves across] the mid-point of the square, a change in trend is indicated. The October 2014 squaring was somewhat of a non-event, but there was a brief opportunity, and one need not have suffered loss exposure. Plus, nothing is perfect.

For all of those who utilize fundamental analysis, even conventional technical tools, none have been as on target as the one from "Above."

Gold Weekly Chart

Back to earth. Where on earth is Bab el-Mandeb, and why did it affect the price of gold?

It is the purported shipping "choke point" for oil tankers, the 4th largest in the world. The strait is located between Yemen, Djibouti, and Eritrea, and it connects the Red Sea with the Gulf of Aden and the Arabian Sea.

Middle East Map

Saudi Arabia just pulled an Obama and began bombing Yemen back into the Stone Age.

Why? Ostensibly, the Saudis want to ensure the Bab el-Mandeb Strait is kept open for oil tanker passage. There is an unfounded "fear" that the Houthis of Yemen will cause major disruptions. Exactly who are the Houthis? Excellent question.

They are a purely Yemeni localized group, Shia, that want to keep Yemen free of government corruption. They are anti-American, no surprise there given the US history of destruction in the Middle East and the phony war on terror, but all the Houthis want is to be respected and not discriminated against by the government. They are not a warring faction and have no military capability, per se, and they have never been known to be a threat outside of Yemen. They are being labeled as "rebels" by the mainstream press because the Obama administration wants that kind of rhetoric in order to shape public opinion about them.

The Houthis have had some backing by Iran, and therein lies the rub. It is really the Arab Sunnis against Iranian Shias. One brand of Muslims against the other. The bombing of Yemen is a proxy war to get to Iran, just like the US-led coup in Ukraine has been a failed proxy war against Russia, in fact, one that has back-fired badly on Obama. After three days of intense bombing by the Saudis, the entire military structure of the legitimate Yemeni government has been destroyed. No one is being held accountable. Obama is backing the Saudis on yet another war bringing yet more destruction to innocent people.

This Saudi action prompted a sharp rally in gold and silver. The threat to any blockade of the Bab el-Mandeb Strait is a fiction, yet oil and gold rallied because of it. By Friday, the tenor of the gold/silver rally had abated.

What could be interesting, as an aside, is to see if China steps in and tells the Saudis to back off. China has a military presence near that strait, but the reason for a potential intervention is not that, rather, China has had its fill with the Obama administration administering destruction wherever it chooses to go.

While all eyes are focused on China's enormous build-up of physical gold, the anticipation that perhaps that country will use their gold to initiate a "gold reset" using the Yuan, and the eventual destruction of the Fed's fiat "dollar," [really, just a FRN, a debt instrument], hardly anyone was paying attention to another Uranus square Pluto, and few had ever hear of the Houthis or the Bab el-Mandeb Strait. Both were pivotal, albeit temporary, forces on gold, last week. We knew about the squaring, but not about the square off in the Arabian Gulf.

The month does not end until Tuesday, but we will include the monthly charts just to take a peek on how they may end and if they may show anything going into April. There is nothing conclusive that says the correction from the 2011 highs has ended. Rallying and staying above 18 is the first hurdle silver must meet.

Silver Monthly Chart

Going by previous patterns, last week we indicated this week's activity had a higher probability of being a small range bar, which is exactly what developed. The location of the close suggests more selling may enter the market next week, and that would be in keeping with price activity in a down trending market. The onus for change is on buyers, and they have not yet met that burden.

Silver Weekly Chart

The increased volume on the rally high, the mid-range close location on that bar, and the overlapping of the last 4 bars says sellers were meeting the efforts of buyers, creating a balance. From balance comes unbalance and odds favor a correction, although anything can happen.

Two areas of support are the 16.60 to 16.37 area, to as far as the D/S bar [Demand over Supply] low, the 16.10 area. In a down market, price usually makes greater inroads into a D/S bar. The character of the bars on any decline, along with volume, will determine if identified supports will hold.

Silver Daily Chart

Regardless of where price closes for March, there is still a lot of effort required to turn this trend around.

Gold Monthly Chart

The developing market activity speaks for itself. Typical action in a down trending market. There is still no evidence of a turn in the offering.

Gold Weekly Chart 2

After an $80 rally, there is room for a normal correction to develop over the next few weeks.

Gold Daily Chart

By Michael Noonan

http://edgetraderplus.com

Michael Noonan, mn@edgetraderplus.com, is a Chicago-based trader with over 30 years in the business. His sole approach to analysis is derived from developing market pattern behavior, found in the form of Price, Volume, and Time, and it is generated from the best source possible, the market itself.

© 2015 Copyright Michael Noonan - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Michael Noonan 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