Metals With McGuirk: Australia Day, Perfect Day for Gold
Happy Australia Day!
Australia Day here and everyone over 16 is either asleep or drunk... I could class myself as a bit of the latter given the last two weeks' events so this will be brief.
Gold solidly held at 552, as anyone could tell from any chart and knowledge of the physical market (three attempts in 7 days should be a big tell). If breached, the 542-40 level could be 'gimme' buying given all the indicators I watch and hear. I still reckon we see a $525 level and am happy to see it, but --- there are so many reasons why it shouldn't! Iran, Israel, India, China, trade deficits, internal politics of the U.S., the U.S. Dollar, reserve diversification by everyone with dollars, Russia and energy for Europe, the physical market strength, Oil, Silver, SENTIMENT, Sovereign Risk etc, etc, etc--- blah blah blah burp...
I know what I just wrote about gold somehow contradicts itself - so for clarification - I think 552 holds, if busted 542 is definite resistance, then I expect it to go back to 555+ and then (maybe) a crack lower to 520ish. Moves lower will be all paper driven as the physical market sits and watches the downdraft. (Interest rate rise by Bernanke to get the market off guard!!)
Silver is on a tear - be careful - but should be about $12 by my reckoning at the current situation. The silver ET F- hmmm... Mexico. Stockpile depletion. Too many reasons for me to list. The possibilities are to get it now or wait till it gets driven back to $8.82 if the paper traders get their way (don't count on it). The physical market is flexing its guns, spreads widening!! Be aware but not concerned if you own physical.
Silver is just money for old boots.
My opinion and NEVER ADVICE…
Many thanks for the good vibes from the Ville towards our mate, the recently departed Nick - It was a great send-off. Lisa reckons we do a funeral down here way better than any she'd ever been to before. The Irish-Catholic Aussie way is to put 'em in the ground and then drink until you fall over. Then you go home – and start again the next day. We did five days. Some are still going. I'm done.
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