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Global Trade Desk- Gold Leads, Silver Holds

Daily Client Note

Gold and Silver Bullion Review


Gold Leads, Silver Holds

Quick-View:
The last Gold Bullion (1550) 4-hour chart signal was generated Jul 05 11 with a break above 1515 that targeted 1525 which has completed its cycle. Gold generated a sell signal from 1496 on Jun 30 2011, which hit its 1485 area targets.

The last 4-hour chart Silver Bullion (36.60) signal was generated on Jul 05 11 with a break above 34.50 that targeted 35.25 which has completed its cycle. Silver generated a near-term sell signal from 34.50 on Jun 30 2011, which targeted 33.80 and quickly completed its cycle.

Potential for new trade signals to form will be determined by the reaction to the next upside moves towards 1555 and 36.80. Gold and silver trade swapped their mixed trend to long, across near and mid-term time-frames. This follows violent test of support that recently revealed buy-the-dips patterns of trade on bullion are back in place. Price action is indicating that trade will hold minor tests of support at technical trend-line areas around 1505 and 34.50.

Bullion Correlations:
Daily trading range is $18 on gold and $1.10 on silver, which are below the historical norm, indicating that speculative interest is low on the selling days and that the dips will likely be bought.  The 100-day Simple Moving Average (NYSE:SMA) on gold is at 1480. The 100-day SMA on silver is at 37.30. Gold bullion has a 12-month 90% correlation to the euro (Eur/Usd) currency pair.