XAGUSD Chart

Some initial upward movement for the price of gold and silver. Not surprising as buy signal was generated by the HUI/GOLD ratio. Silver outperformed and closed at the high for the week. A slight uptrend is apparent on the intraday chart. As you probably know all trend lines are made to be broken and the shorter the time frame the larger the chance that a trend line will be broken. Anyway, markets moves are not linear, markets moves in waves or more precisely fractal waves.

Spot Silver intraday 2 hours chart.

Quick Update

Dear readers,

It is a given fact that gold reached a technical comfort zone. I find it funny to read commentary with price objectives slightly above, at or below gold mining break even point. It is a mystery how low the price of gold can be manipulated in a mission to hide competitive currencies devaluation on a global scale.

All charts and ratios considered I estimate that a volatile markup for the price of gold and silver should soon follow.

Recommended Readings

Individual gold trade this month
By Wang Lan (China Daily)
Updated: 2007-07-04 08:51

The beginning of gold trading by individual investors on the Shanghai Gold Exchange (SGE) later this month is expected to provide a welcome alternative at a time of high stock market volatility. -link

RTS Realtime Systems Group Offers Connectivity To Dubai Gold & Commodities Exchange

03/07/07

RTS Realtime Systems Group (RTS), a leading independent software vendor, announced that the firm is now offering access to the Dubai Gold & Commodities Exchange (DGCX). The move expands the RTS presence in the Middle East and further strengthens its leadership position in electronic trading software, with thousands of user connections to more than 85 exchanges and liquidity pools throughout the world.
-link

Warehouses to help stabilise gold prices

(03-07-2007)
The International Gold Council this year estimates that demand for gold in Viet Nam could reach 70-80 tonnes. A Brink’s Viet Nam representative, Ben Van Kerkwijk predicts in the short run demand will accelerate. - link


GLOBAL EXODUS FROM THE US DOLLAR IN MOTION by Gary Dorsch -link


The Silver Millionaire By David Morgan - link

Positive Reason

Interesting times head as significant adjustments are in the works. Currencies, Silver Gold, Oil, Stocks all in the equation with the most controlled item actually needs to be Interest rates.

Commodities continue to trade with a group and / or individual bias. Generally it might be the case that commodities are the best play as the long term (decades) cycle is probably most favorable for this asset class.

Gold and Silver fundamentals have never been better with global system adjustments seen as a long term positive. Significant amount of shorting taking place and some of it probably un hedged (naked).

Exact timing and finding reasons for the day to day action is tricky.

USD Index

This chart does not look good to say the least... , the bounce was disappointing and the new downtrend looks convincing.