Gold and Silver Bullion Review
Seeking Alpha Analyst Since 2008
New signal formed on gold
News wires are covering the increase in bullion margin requirements required to hold positions as a reason for recent declines. TheLFB client note updates have highlighted that moves lower may soon start to be reversed.
Outlook:
A new signal was sent to clients overnight, with gold bullion revealing that a break above 1506 could be sustainable if global equity and risk markets find buyers. Silver set up a buy signal but failed to confirm that potential and momentum would be strong enough to follow through on Monday.
Sentiment towards bullion trade remains mixed. Price momentum favors a bounce off support that buys the recent dips on both GLD and SLV markets. Caution is required in expecting a collapse of GLD and SLV values below 1460 and 32.50 respectively.
Price Action:
There was strong buying activity at 1490 on gold, and 33.00 on silver in March, which are now potential price reversal areas of note. These swing point areas, where a near-term trend forms and price action reverses previous trade direction, will be closely monitored and signals and alerts sent to subscribers as things unfold.
The daily trading range is $19 on gold and $1.20 on silver, both of which are above the historical norm. The 50-day Simple Moving Average on gold is @ 1458 and @ 42.00 on silver. The 20-day SMA on gold is @ 1501 and @ 38.70 on silver.
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