Gold And Silver Dead Cat Bounce And More Carnage To Come Or All In?Submitted by Doug Eberhardt on Fri, 04/26/2013 - 12:10
Last week we saw some real carnage in the gold and silver markets. In two days, April 12 and April 15, we saw the price of gold fall over $200 and many in the financial media came out of the woodwork saying the gold bull was over. Since that time we have had a move off the low of $1,322 reached April 15th to the current price of just over $1,470, a nice $140+ pop back up in price. Silver yesterday was up more than $1.30 at $24.24 This leaves investors wanting to know, have we hit bottom in gold and silver and will this be the 13th year straight of higher gold prices or will we continue the pattern of lower lows?
In September of 2011, the dollar hit a low of 74.14 as seen in the following chart. Below that you will see the chart as to where the dollar is today, April 26, 2013, currently sitting at just below 83 on the index.
From November of 2011 to today, you can read what my comments have been about the gold and silver markets in an article I wrote last Monday, Gold and Silver Doom and Gloom or Crack Up Boom?
Some highlights from that article;
"I said I believe we get one more push down in gold and silver." "I believe the domino's will start falling in the eurozone and Japan first." "Gold is still in its second and longest phase. The professionals will still try and buck you off the gold and silver bull." "Market Makers love to move markets they can control." "I fully expect over the next few months the Market Makers to test and break the 200 day moving averages lower on both gold and silver. Why not make them scream UNCLE? That's what they do!"
Well, last Monday we got that fall in price where the price was pushed down producing the candlestick long tail down that typically signifies a reversal in price as seen in the chart below. And a reversal in price is what we got since that time, but is it sustainable?
Short Term Thinking vs. Long Term Planning
Continued at Seeking Alpha: http://bit.ly/ZTixuq