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The August gold futures contract had a weekly close of $1,583 per ounce, down about $10 dollars per ounce for the week. Considering all the anticipation earlier last week, the FOMC meeting took place without a clear and transparent US economic plan and the market took it in stride.

This is the ninth time the paper shorts have failed to break gold and silver prices to new lows since the May 16, 2012 low of $1,529.30 per ounce.

With the market closing above the $1,600 levels on a weekly basis, it would confirm a bullish descending wedge breakout creating more pressure on the shorts. Buy stops triggered at these levels could propel prices into the $1,625 to the $1,650 levels of monthly resistance.

The eurozone and its effects on the global economic situation seems to indicate the downward deflationary spiral continues to accelerate, as the central leaders and planners seem to have lost all sense of urgency and plan of action to what is developing to be a worldwide contagion that could bring the global economy to its knees.

The world economy is at its worst since 2009. As a result, six out of seven economies using the euro are in recession. The US is struggling and economic powers like China, India or Brazil are in no position to help.

A eurozone slowdown creates a domino effect. As one economy weakens other economies do as well. The eurozone slowdown hurts factories in China and, as a result, China buys less from other countries like Brazil. Consequently, the IMF has reduced its forecast for global growth this year to 3.5% - the slowest since 2009.

It was a quiet week. Maybe the calm before the storm, as the gold market fundamentals keep getting stronger by the minute in what appears to be major central bank and sovereign buying around the mid-1,550 levels for cash gold and just under 27 for cash silver. It also appears that retail and Institutional buying have stepped up their bids at these levels.

The technical picture continues to get stronger, as the market has closed above the $1,881 (9MA) level and the $1,585 (36MA) level on the daily charts. A weekly close above the $1,593 (9MA) is bullish and sets the weekly uptrend well in place.

Let's take a look at some metals stocks and ETFs and see how they compared against the yellow metal.

GDX: Market Vectors Gold Miners

  • The GDX (Market Vectors Gold Miners) ETF closed at 41.73. The 52-week Range is: 39.08-66.98.
  • The market, closing below the 9, 18, and 36 day MAs on a weekly basis, remains in a bearish posture. A daily close above the 9MA at 41.91, negates the short-term bearish trend to neutral.
  • With the market closing above the VC Weekly Price Momentum Indicator of 41.64, it has negated the bearish sentiment to bullish.
  • Look to take some profits if long as we reach the 41.96 to 42.19 levels in the next week.
  • Buy corrections to 41.40 and 41.08 levels to cover shorts and go long on a reversal stop. If long, use the 38.15 levels as a SCO/GTC (Stop Close Only and Good 'Till Cancelled order).

PHYS: Sprott Physical Gold Trust ETV

  • The PHYS - Sprott Physical Gold Trust ETF - closed at 13.70. The 52-week Range is: 13.03-16.86.
  • The market, closing below the 9, 18, and 36 day MAs on a weekly basis, remains in a bearish posture. The daily close above the 9MA at 13.67, negates the short-term bearish trend to neutral.
  • With the market closing above the VC Weekly Price Momentum Indicator of 13.67, it has negated the bearish sentiment, turning to bullish.
  • Look to take some profits if long as we reach 13.78 and 13.87 levels for the next week.
  • Buy corrections to 13.59 and 13.47 levels to cover shorts and go long on a reversal stop. If long, use the 13.47 levels as a SCO/GTC (Stop Close Only and Good 'Till Cancelled order).

GLD: SPDR Gold Trust ETF

  • The GLD - SPDR Gold Trust ETF closed at 153.67. The 52-week Range is: 148.27-185.85.
  • The market, closing above the 9,18 day MAs on a weekly basis, is neutral to bullish. A daily close above the 36MA of 153.74 confirms the weekly trend is bullish.
  • With the market closing above the VC Weekly Price Momentum Indicator of 153.49, it has negated the bearish sentiment to bullish.
  • Look to take some profits if long as we reach the 154.22 to 154.74 levels for the next week.
  • Buy corrections to 152.97 and 152.24 levels to cover shorts and go long on a reversal stop. If long, use the 152.24 levels as a SCO/GTC (Stop Close Only and Good 'Till Cancelled order).

AGQ: ProShares Ultra Silver ETF

  • The AGQ - ProShares Ultra Silver ETF - closed at 37.37. The 52-week Range is: 34.45-127.08.
  • The market, closing below the 9,18 and 36 day MAs on a weekly basis, remains in a bearish posture. A daily close above the 9MA at 37 , negates the short-term bearish trend to neutral.
  • With the market closing above the VC Weekly Price Momentum Indicator of 37.13, it has negated the bearish sentiment to bullish.
  • Look to take some profits if long as we reach the 38.26 to 38.93 levels in the next week.
  • Buy corrections to 36.46 and 35.33 levels to cover shorts and go long on a reversal stop. If long, use the 35.33 levels as a SCO/GTC (Stop Close Only and Good 'Till Canceled order).

AG: First Majestic Silver Corp.

  • First Majestic Silver Corp. closed at 15.33. The 52-week Range is: 12.12-25.56. The market, closing above the 9, 18 and 36 MAs on a weekly basis, negates the previous bearish trend to bullish.
  • With the market closing above the VC Weekly Price Momentum Indicator of 15.01, it has negated the bearish sentiment to bullish.
  • Look to take some profits if long as we reach the the 15.90 to 16.74 levels for the next week.
  • Buy corrections to the 14.44 and 13.55 levels to cover shorts and go long on a reversal stop. If long, use the 13.55 levels as a SCO/GTC (Stop Close Only and Good 'Till Cancelled order).

SLW - Silver Wheaton Corp.

  • Silver Wheaton Corp closed at 26.47. The 52-week Range is: 22.94 and 42.50. The market, closing below the 9, 18, and 36 day MAs on a weekly basis, is bearish.
  • With the market closing above the VC Weekly Price Momentum Indicator of 26.16, it has negated the bearish sentiment to bullish.
  • Look to take some profits if long as we reach the 26.96 to 27.44 levels in the next week.
  • Buy corrections to 25.67 to 24.86 levels to cover shorts and go long on a reversal stop. If long, use the 35.26 levels as a SCO/GTC (Stop Close Only and Good 'Till Canceled order).

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in PSLV, PHYS, AG, AGQ, GDX, GLD over the next 72 hours.

Additional disclosure: Precious metals products trading involves significant risk of loss and is not suitable for everyone. Past performance is not necessarily indicative of future results.

Source: Metals Stocks And ETFs Weekly Report: July 23, 2012