International Metals Group

Gold Rises amid manufacturing date, QE comments

mlan — Fri, 19 Oct 2012 06:10:18 +0000

Gold futures on the Comex division of the New-York Exchange rose Monday, as a better than expected U.S. manufacturing gage and pro QE comments from central bank official boosted trading.

The most active gold contract for December delivery went up 9.4 U.S. dollars, or 0.53 percent, to settle at 1,783.3 dollars per ounce.

After falling on Friday, gold recovered all of the previous session’s losses on Monday to end moderately higher. The precious metal touched a high of 1,794 dollars per ounce before retreating back down towards the end of the trading session.

Driving gold’s early rally was the morning release from the Institute for Supply Management (ISM), showing the company’s closely-watched manufacturing index at a three-month high. The ISM index rose to 51.5 in September from the August reading of 49. 6, above analysts’ expectations.

Also supporting gold were comments from U.S. Federal Reserve Bank Chairman Ben Bernanke and Chicago Fed Governor Charles Evans, on the benefits of the bank’s recent quantitative easing (QE) decision. In a Monday speech in Indianapolis, Bernanke defended QE from critics, while Evans also called QE a “step in the right direction” in a morning CNBC interview.

QE policies support gold, as the precious metal traditionally rises on concerns of inflation.

Outside market forces were also positive Monday, as the session saw gains in U.S. equities and crude oil, as well as a weaker dollar.

Silver for December delivery sharply rose 37.5 cents, or 1.08 percent, to close at 34.952 dollars per ounce.

Regards,

International Metals Group
1.866.662.6419

Anticipating market cycles is a complex and time consuming process and many investors simply do not have the time or expertise to shift their assets as conditions change. The precious metals market certainly offers many short-term opportunities that are very attractive and should always be taken advantage of when possible. However, we prefer to focus on a long term disciplined approach that provides you with the best possible profit potential.

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Golden cross in the silver technical chart signals a big price advance imminent

mlan — Fri, 19 Oct 2012 05:57:48 +0000

Whatever the worries about slowing global industrial output now for theprice of silver, the signal from the technical charts is completely unambiguous. There is a classic golden cross with the 50-day moving average crossing over the 200-day moving average. That means buy.

Basically this is an upward price momentum indicator. Traders see this as a classic buying signal, and so it tends to be somewhat self-fulfilling. As the silver price chart below from Goldsilver.com shows, the last three times this has happened it has been followed by an explosive price movement:

Do the math and extrapolate the previous price movements from the golden crosses: a 47 per cent move in five months takes us to $51 an ounce by next February; a 103 per cent price hike in nine months takes us to $70 by next June; and 277 per cent over 25 months has silver at $130 an ounce in October 2015.

Caveat emptor

Of course we can still see short-term price pull backs within any of these timeframes. Silver is notoriously volatile.

Regards,

International Metals Group
1.866.662.6419

Technical Trading: Gold Triangle Pattern Targets Gains To $2,100 An Ounce

mlan — Fri, 19 Oct 2012 02:10:03 +0000

Mon Oct 1—Comex December gold futures probed higher in early morning New York action Monday, but the rally to a fresh eight-month high was met with profit-taking and selling. In the short-term, the bulls and the bears have reached a point where they will do battle.

However, a look at the longer-term monthly chart reaffirms the primary secular bull trend in gold and confirms a bullish triangle target at the $2,100 per ounce level in the weeks and months ahead.

Taking a step back to examine recent market action, the market has rallied over $200 an ounce since early August; it’s reached a critical resistance zone at $1,800 and some short-term sideway consolidation and range-trade is likely.

Unlike the stair-step rally pattern since late August, two-sided trade has entered the gold arena for now. And, until the bulls can confidently blast through the $1,800 ceiling, short-term speculators will try their hand at the short-side of the market.

But, a close look at the monthly chart of nearby gold futures, shown below, reveals a confirmed bullish breakout from a triangle-like pattern.

Within technical analysis, triangles are viewed as continuation patterns. What does that mean? Simply put, a triangle represents a pause in the primary trend. Gold rallied for 10 years and then consolidated for a bit over a year in the triangle pattern. Now the gold bulls have woken back up and blasted higher from that triangle.

Triangle patterns offer technical traders an actual target or measured move objective. A projection from this triangle is seen at roughly $2,100 an ounce. Traders can simply take the widest part of the triangle and add that onto the breakout point, or the declining trendline seen off the all-time highs. That calculation roughly projects to $2,100. Some traders calculate their triangle targets differently, but the bottom line is that the gold market has broken out of a bullish continuation pattern that ultimately projects a rally to new all-time highs.

Very short-term patience may be needed, as the bulls have run out of steam. Daily momentum has turned lower from overbought levels, which is a positive thing for the longer-term uptrend. But, it also shows the market has gotten a little tired.

On the downside, strong support lies at $1,750 and then $1,738.30 on the December futures contract. Near term, gold may well be stuck in a range between $1,800 and $1,750/1,738.

But, once the bulls are rested and rearing to go once again, look out on the upside, as that triangle targets gains to the $2,100 level.

By Kira Brecht

Regards,

International Metals Group
1.866.662.6419

Gold Surges on Spain Budget News, Ideas of Fresh China Stimulus

mlan — Fri, 19 Oct 2012 02:06:13 +0000

P.M. Kitco Metals Roundup: Gold Surges on Spain Budget News, Ideas of Fresh China Stimulus
Thursday September 27, 2012 1:51 PM

Comex gold futures ended the U.S. day session sharply higher and near the daily high Thursday. The precious metals made a midday surge, to extend earlier price gains, on news that Spain’s government announced its budget plan will meet deficit targets this year, which the market place greeted with approval. Meantime, growing optimism that China will further stimulate its economy following a big central bank injection of liquidity into China’s financial system earlier Thursday also helped to give the precious metals markets a boost. December gold last traded up $26.90 at $1,780.70 an ounce. Spot gold was last quoted up $25.80 an ounce at $1,779.50. December Comex silver last traded up $0.79 at $34.73 an ounce.

At mid-morning gold and silver futures extended what were only modest early gains in the wake of surprisingly weak U.S. economic data that was issued by the government. U.S. durable goods orders fell a whopping 13% in August, while the latest estimate for second-quarter U.S. gross domestic product saw the growth rate shaved by 0.4%, to just 1.3% growth.

The U.S. dollar index was weaker in early trading Thursday, but then saw downside price pressure increase following the weak U.S. economic data and after Spain’s budget announcement. The Euro currency rallied in the wake of the Spanish budget news, which put further selling pressure on the U.S. dollar. The U.S. dollar bears have the overall near-term technical advantage. Meantime, Nymex crude oil prices traded sharply higher Thursday, on some short covering and on the weaker dollar and Spain news. These two key “outside markets” will continue to have a significant daily influence on gold and silver prices.

The London P.M. gold fixing is $1,763.00 versus the previous P.M. fixing of $1,744.75.
Technically, December gold futures prices closed near the session high Thursday and were boosted by fresh technical buying as the end of the month and end of the quarter occurs on Friday. Gold bulls still have the solid overall near-term technical advantage and regained some fresh upside momentum Thursday. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at the 20012 high of $1,800.90. Bears’ next near-term downside price objective is closing prices below solid technical support at $1,720.00. First resistance is seen at Thursday’s high of $1,782.90 and then at the September high of $1,790.00. First support is seen at $1,775.00 and then at $1,768.00. Wyckoff’s Market Rating: 7.5

December silver futures prices closed nearer the session high Thursday and saw fresh technical buying. Silver bulls are in firm near-term technical command. Prices are in a nine-week-old uptrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $36.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $32.51. First resistance is seen at Thursday’s high of $34.815 and then at $35.00. Next support is seen at $34.50 and then at $34.00. Wyckoff’s Market Rating: 7.5.

December N.Y. copper closed up 325 points at 374.25 cents Thursday. Prices closed near mid-range and saw short covering and bargain hunting. The key “outside markets” were bullish for the copper market Thursday as the U.S. dollar index was lower and crude oil prices were sharply higher. Copper bulls have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Copper bulls’ next upside breakout objective is pushing and closing prices above solid technical resistance at the September high of 383.95 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 364.00 cents. First resistance is seen at Thursday’s high of 377.40 cents and then at this week’s high of 378.40 cents. First support is seen at 372.00 cents and then at Thursday’s low of 370.00 cents. Wyckoff’s Market Rating: 6.0.

By Jim Wyckoff

Regards,

International Metals Group
1.866.662.6419

Why silver could double in price within the next three months

mlan — Thu, 11 Oct 2012 23:39:46 +0000

Posted on July 2012

We have been looking at the latest price chart analysis for precious metals from technical guru Clive Maund and his conclusions are very clear. Gold and silver prices have their lows for the year behind them and are set up for a powerful advance.

As usual there is a solid fundamental reason for this change of direction. Up until the end of last week the euro crisis threatened an imminent blow-up of the global banking system that would have resulted in a panic sell-off of all asset classes including precious metals.

Money printing again

That crisis was not only averted, and kicked down the road again but the solution in progress is going to involve considerable action by central banks to loosen monetary conditions. This is exactly the sort of environment in which precious metal prices go up and up.

Silver as ever is the classic leveraged play on gold and will go up further when gold prices go up (and down faster when they go down). Mr Maund’s charts show negative sentiment hitting a rock bottom last week in the market, a clear indicator of a market bottom now that the fundamentals have changed:

Regards,

International Metals Group
1.866.662.6419