Texas Trade Report on Gold and Silver For 19 January - 25 January

Good Morning, Good Afternoon or Good Evening where ever you are in the world. This is Texas Trade Report on the forecast for gold and silver for today. This report is reporting price action movements of gold and silver for today. This is the sole focus of this report.  Before I can go any further, here is the risk disclaimer.

Risk Disclaimer:
Investing in any financial asset does carry the risk of loss. There is the risk of loss of the money have invested. Never invest money that you are not committed losing. There is a possibility of losing your original investment. If you are not sure about investing, seek the help of a registered investment adviser.

The purpose is to inform about price action and direction about gold and silver. It is to report only on information on gold and silver. It is not endorsement to buy or sell to a particular bullion dealer nor it is a recommendation from a particular firm. All opinions are my own and not Blogger.com nor Google.com.

Gold Daily Chart

Onto gold, it is up by $13.40, which about 1.08%. It closed on Friday at $1253.10. The fib levels on the daily chart are $1252.02 at the 23.6, $1268.13 at the 38.2% fib level, $1292.50 at the 50% level, at $1331.23 at 61.8 fib level on the daily chart. Gold did make some headway to pierce the 23.6% fib level. We do see this. We do possibly see that this will track higher.

Gold 30 Minute Chart

Onto the 30 minute chart, as you can see, this movement is very pronounced. You can see the bullish movement on it. This is very good sign. We still remain bullish longer term. Most traders and analysts are bearish on gold. There is a much more compelling case to be made overall that much of the downside we saw last year is temporary. When Janet Yellen does take over, the policies they she could establish will be much in line that Ben Bernanke has supported during his term as chairman of the Federal Reserve.

Silver Daily Chart

Onto silver, it closed on Friday at $20.29 and is up by 29 cents. It is up by 1.20%. The key fib levels for silver at 50.0% at $20.94 and $21.45 at the 61.8 fib level on the daily chart.  We can see the long consolidation pattern wanting to break. It is very clear that it wants to.

 

Silver 30 Minute Chart

On the 30 minute chart, we do see the consolidation that silver has been trapped in for a while may start to break. We did break to the upside. This consolidation phases that has been taken place for some time may be ending soon.

            We do see that the news for investing in gold and investing in silver is looking better over time. We do know the policies of the central banks is one of using monetary stimulus. We could see the Fed backtrack. With the pulling back, it comes with the real question of raising interest rates. The question the central banks have failed to ask is how long are we going to support the buying government debt. On smaller scale for countries like the Scandinavia countries, where this is only tried on the short time and their economy are much smaller, you do not have a large impact on the global economy like the US. The US and other have much larger economies where these policies do have much greater impact  There is much debate about inflation or deflation. Either way, both gold and silver will do well in both environments to hold their value.

The S & P 500 and other indexes are confused by the actions of the Federal Reserve and some of the remarks made earlier this month by Chairman Bernanke and other Fed Officials. We know that the policy cannot continue forever. The Fed has corned itself in hole much Napoleon did at Waterloo with Wellington. The real question is when will all of the free money makes way into the system. We know that it cannot be held back indefinitely. Mostly, it is a matter of time. 

            When the expectations by the markets and many analysts do not match the reality, you will get  a reset on those actions. The precious metals markets saying for the most part, wait and hold because the reality is quite different from what is expected. We do expect a risk aversion to take hold in the future. We know that markets can go higher but not forever. Markets can correct and they can change expectations very quickly. Lastly, this correction will come and is more of a waiting game. Have a great day and will put another later on in the week.

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