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Line (1) was important for the Gold & Silver Miners (XAU index), as it went up four fold over a 10-year period.Now a parallel line to this rally looks to be coming into place at (3) in the above chart after a 40% decline in this index.
Support is support until broken and the miners are back at parallel support right now, creating a bullish wick at this key line last week.
Is the Gold/Silver index (XAU) the only place that might be on support in the metals complex?
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As you can see, Gold & Silver find themselves on medium term support at this time in the 2-pack above.
Gold Breaches $1590 after Weidmann Says “Eurozone Crisis Not Over”, Chinese Physical Demand “Supporting Gold Right Now”
AFTER trading sideways for several sessions, gold bullion jumped above $1590 an ounce for the first time this month Tuesday morning in London, in what analysts called a “technical” move after gold broke through a key level following remarks from Bundesbank president Jens Weidmann.
“We see support at the bottom of the sideways range at $1561 and resistance at the top at $1586,” said yesterday’s technical analysis note from Scotiabank.
Gold rose above that level however shortly after Weidmann told reporters that the Eurozone crisis “is not over” and said that the Eurozone has “declining inflation risks”.
Read more at http://investmentwatchblog.com/gold-breaches-1590-after-weidmann-says-eurozone-crisis-not-over-chinese-physical-demand-supporting-gold-right-now/
Shanghai Gold Exchange Sees Volumes Jump 24% In Year
“The strong physical demand in China is the main reason behind gold’s resilience,” a Beijing-based trader told Reuters. Physical demand prospects out of China remain positive in the weeks ahead, UBS AG said according to Bloomberg.
China is very vulnerable to a property crash and its own economic crisis. The Chinese stock market has performed very poorly in recent years and Chinese people realise the importance of gold as a store of value.
The market continues to digest the better than expected U.S. jobs data with the risks still emanating from Italy and the Euro zone. Contagion in the Eurozone and indeed currency crises remain real risks – risks which are being completely ignored … for now.
Sentiment is as bad as we have seen it in recent years which suggests to us that while gold may go lower in the short term – we are close to a bottom.
Bernanke Could Lose Half A Trillion On Balance Sheet
John Paulson, a lifelong New Yorker, is exploring a move to Puerto Rico, where a new law would eliminate taxes on gains from the $9.5 billion he has invested in his own hedge funds, according to four people who have spoken to him about a possible relocation.
“We’re just going to kill the dollar” reported to Kyle Bass by a senior Obama administration individual:
See vid below at 3:40