Top Metals Smashed The Euro! Will It Hit Back?

Aibek Burabayev - INO.com Contributor - Metals


I started to cover European gold at the beginning of this year when it was at the 1000 EUR level. In spring I added silver to the pack as it had an interesting setup on the chart. Today I would like to share with you an update of the charts and to show you the outcomes.

Let us start with a single currency chart and see if we can find some clues which could help us with the metal crosses charts.

Chart 1. EURUSD Monthly: RSI Calls For Higher High

EURUSD Monthly
Chart courtesy of tradingview.com

Now, after almost two months, the dust of BREXIT hysteria has settled. The euro has managed not just to survive, but to score more than 2 cents after it touched the $1.09 mark on the referendum selloff in June. Friedrich Nietzsche once said - "That which does not kill us makes us stronger." The light version of the chart above had been shown to you in May.

The euro is still sitting on the very important trendline (dark gray) and the similar price action was earlier when the price approached this trendline. I mean the same combination of lower highs amid higher lows. The RSI has the same divergence as in 2001. This time, we have a flatter downtrend (orange) and the RSI is still below its trendline unlike in the previous case.

There are three triggers which could help the euro to have a big against US dollar once they are broken: Continue reading "Top Metals Smashed The Euro! Will It Hit Back?"

Remembering Gold's Bullish Set-Up on Dec. 1, 2015

Precious metals expert Michael Ballanger compares the Dec. 1, 2015 Gold COT Report with the latest one; the contrasts could not be greater.

Ballanger COT Report Gold

I have a question: "Does ANYONE have the foggiest recollection of just how incredibly bullish the Gold COT (Commitment of Traders) Report structure was back on Dec. 1, 2015?" Continue reading "Remembering Gold's Bullish Set-Up on Dec. 1, 2015"

Gold/Silver Ratio: Halfway To The Target

Aibek Burabayev - INO.com Contributor - Metals


In my February post I called for the topping of the ratio as it hit the upside of the long-term range. The idea was to short gold and buy silver simultaneously at the 79 oz level. It's gone very well, and you can see it in the following charts.

Below is the reconstruction of the February chart to refresh your memory.

Chart 1. Gold/Silver Ratio Monthly: Half Of The Range

Gold/Silver Ratio Monthly
Chart courtesy of tradingview.com

I changed the color of my old remarks to black to stress your attention to the new colored annotations. The post-idea ratio dynamics are highlighted with the orange rectangle. Continue reading "Gold/Silver Ratio: Halfway To The Target"

The Fed Giveth and the Bullion Banks Taketh Away…

Precious metal expert Michael Ballanger breaks down the gold price roller coaster surrounding the Fed's decision not to raise interest rates.

Ballanger chart cover

Janet Yellen just blew all remaining semblances of credibility believed to be still present at the U.S. Federal Reserve Board.

We have all heard for the past month or so that the Fed was going to hike the Fed Funds rate at today's meeting, the anticipation of which caused a rally in the U.S. Dollar (USD) and a surge in stocks - all while the bond market was rallying in response to weakness in the macroeconomic environment.

Well, they didn't raise as predicted back in March because of "China weakness," so today they didn't hike because of "soft exports" and "vulnerabilities in the global economy" and "Brexit worries" and a host of other totally clueless hypothecations. But the bottom line is that they didn't hike because the ensuing dollar rally would impair the collateral that underpins the massive debts owed by governments and homeowners to the banks that hold that debt. Stocks reversed lower when it became clear that the Fed has absolutely zero control over the U.S. economy, and is now truly caught in the headlights because banks are getting killed with the yield curve this "flat," and since the Fed's shareholders ARE "the banks," it takes on an aura of the surreal. Continue reading "The Fed Giveth and the Bullion Banks Taketh Away…"

Gold & Silver: First Pullback

Aibek Burabayev - INO.com Contributor - Metals


Chart 1. Gold Daily: Second to Win but First to Hold

Gold: Daily Chart
Chart courtesy of tradingview.com

The top metal has was just $4 from reaching the target of $1307 which was set in my March post. It had reached a high of $1303 on May 2nd before it started a one-month long correction anticipated in the same post. The depth of the correction is minimal at 38.2% and is well above the normal retracement area within the 50-78.6% range ($1176-$1101) highlighted in the March post. Continue reading "Gold & Silver: First Pullback"