Gold & Silver; Geopolitical Tensions
Geopolitical
Tensions
Geopolitical
turmoil has cast a deep long shadow over economic turmoil. It was
rather unfortunate that such tragedy could happen to Malaysian
Airlines after the earlier mishap of a missing plane. Both incidents
took innocent lives and cast a great shadow over the future of
Malaysia airlines.
Meanwhile, global
stock markets seem to have eased with little correction as the VIX
index continues to drop. The BBC reports that investors are ready to
take more risks to invest their money. However, critics are cautious
on such optimism and this is also shared by Miss Lagarde on current
market optimism.
Investors are being lulled into a false sense of security Does this mean that it is time to stop snoozing the alarm bell and wake up to reality? Is there really financial stability in any developed economy of this era? Some would argue that some sort of stability is better than none and the market have adapted well. What could be worse when things has not picked up for the good?
The old war between Israel and Palestinian continue to rage and raked up a higher number of death tolls. Conflicts between the 2 countries are well known and often innocent lives are taken away. Diplomatic solutions are out of the question at this stage and the long month of fighting will continue until a certain element of truce is reach.
It is not ironic then that this particular report was written, edited and completed at my parent’s house.
Gold
Technical Outlook
Monthly
Chart
We have purposely picked on the monthly chart to give a wider indication of what could be in store. There was no doubt that the correction in gold throughout the last few months have severe and rather imminent. It is a healthy correction that is needed as the market flushed away investors that see no value in the yellow metal as the economy made amends.
However,
it remains too early to call for resurgence in prices but we are
optimistic that it could happen in the next few months on the back of
several scenarios:
- Stock market is overdue for a correction
- the MACD fast line is about to cross higher
- RSI is bouncing higher but the lack of interest could stifle

Resistance: $ 1321, $ 1345, $ 1363 Support: $ 1292, $ 1278, $ 1240 |
Traders Notes:
Should support fail at $ 1292, prices could break lower to target
$ 1248 area. Upside potential could remain tight as the upper
Bollinger band converged.
Short Term (1 - 3 weeks) | Medium Term (1 - 3 months) | Long Term (6- 12 months) |
Bearish $ 1258 | Bullish $ 1331 | Target $ 1550 |
Silver Technical Outlook
Weekly Chart
The white metal
did break higher after a lull period of disinterest from investors.
The weekly chart shown below indicate that the silver price may have
a medium low and a significant run up higher could be on the cards.
Despite that, prices could easily break below and retest support at $
20.45 area. Failure to hold above that support area could transpire
into a more selling.
Resistance: $ 21.57, $ 21.26, $ 21.08 Support: $ 20.58, $ 20.02, $ 18.65 |
Traders Notes:
Trade at your own peril
Short Term (1 - 3 weeks) | Medium Term (1 - 3 months) | Long Term (6 - 12 months) |
Flat | Flat | Bullish - a potential bull run? |
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article is written according to the author’s views and by no means
indicates investment purpose. Opinions
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22 Jul 2014