SURPRISE-SURPRISE........ITS A BUYING SIGNAL FOR PRECIOUS METALS

GOLD COMEX SETTLE $ 1619.20 (GCZ12)

Both silver and gold close above 100 days moving average showing buyer were present in the mkt at lower level. The precious metals at the end of last week again approached the top end of the huge bases they have been building since May.  Gold and silver dropped back a little yesterday to take a breather.  Nevertheless, they are ready to probe the top layer of overhead resistance that has been keeping their price contained.

The next step is for gold to break above $1630 and silver to break above $28.30, and when it happens it will signal their long awaited breakout from these 3-month bases.  Hopefully these two hurdles will fall on the same day.  If they do, it will signal real strength because both precious metals are confirming each other by breaking out of their base at the same time. 

  Slowly but steadily gold has been pulling away from $1580, while silver has been pulling away from $27.  As I have been saying, I think those prices are history.  We won't see them again.

Clearly the precious metals will soar if the Fed or ECB announces more quantitative easing.  But gold and silver don't need QE to move higher.  Given all of the financial uncertainty out there, there are numerous problems that we know about which could be the trigger lighting the spark to send the precious metals higher.

TODAY LEVEL (08/17)

RESISTENCE #2........................$ 1633

RESISTENCE #1........................$ 1626

PIVOT........................................$ 1615

SUPPORT #1.............................$ 1607

SUPPORT #2.............................$ 1595

Happy Trading

Rahul Kumar

Gold Specialist

Call me for trade set-up : +91 895-8173-410

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