News that the German government has deserted plans to invest proceeds from gold sales into a special fund assigned for research and education has given a boost to a weak gold market.
Mining equities continued to march higher but overhead resistance is seen in many equities.
Silver is taking center stage ... with the news of Barclays' silver ETF a step closer to possible approval. We have some gold investors moving into the silver market.
Silver is taking center stage...with the news of Barclays' silver ETF a step closer to possible approval.
Silver stocks are powering ahead ... taking the HUI above the 315-316 resistance to all-time record highs.
For the short-term, we expect silver to add onto gains in the coming sessions and possibly spike much higher before we find the next large liquidation and correction.
Gold continues to perform very well, despite calls from industry analysts that a correction is due at these levels. In fact, gold does not appear to want to correct just yet and is looking to run to $600.
Gold Fields had a stellar second-quarter earnings release Thursday, with a combination of a strong Rand gold price, slightly lower production costs and an increase in production to 1.04 million ounces (from 993,000).
Gold, silver and platinum started the week off on positive footing with continued excitement in the silver markets regarding the proposed silver ETF in the United States.
It is just a matter of time before we have another leg down in the U.S. dollar and this will just add to the luster of gold and silver.
Metal equities took a thrashing and it appears there may be more weakness in the short term here.
The real action remains in silver, taking away from gold's luster.
Uncertainty on future FOMC interest-rate hikes, with a strong bias of at least another quarter-point increase at the next meeting, gave the U.S. dollar a lift after the FOMC decision.
As is so often the case in the precious metals, corrections tend to be vicious and quick. With the major move higher over the past several sessions, the gold market is working off some of the excesses.
Pullbacks are expected to bring in willing buyers.
Equities remain ready to run even higher if the metals allow them to. Otherwise a correction is due.
It's difficult to see how much investment demand will be caused by this yet, but due to the lack of silver investment products ... this should attract some good interest.
HUI is indicating a further move higher now looking to target the 330-340 level.
All indications are that the geopolitical tensions will continue to support gold at this juncture, with the breakdown in the U.S. dollar adding even more ammo to the run.
The typical investor has yet to discover the attractiveness of this asset -- the gold price is just starting to reflect this move as investment dollars flow in.
This has resulted into greater attention to the juniors and exploration equities, with a renewed flow of speculative capital entering this sector over the past several weeks where some strong gains have been seen.
We are undergoing a healthy bull market consolidation, with the likelihood there may be more pain to the downside.
The launch of the silver ETF is expected to draw large investment money into the silver markets, which would most indisputably take silver prices much higher.
