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Gold & Silver; Going from Strength to Strength

Everything seems to have gone back to normal and some even said better times are here already. Others questioned if it is only a minority few that benefited from the current buoyant stimulated economic recovery. Most seems to struggle with pay day loan (debts), month to month credit card bill, ever increasing cost of living and depressing wage level. Elected politicians and the media prophesy a positive picture full of hope and real recovery. We questioned such existence no matter how hard we try to stay positive.

In every financial crash, there is a time gap where the system breaks into a vacuum where depression sets in to readjust the supply and demand. Recent economic studies claimed that it may not be true now given that the economic situation is different. They argued that depression is replaced by a blip in the system given the amount of freshly printed money in the economy. Basically, we are in the midst of injected-stimulant depression. But because we are all high with new printed money, it made the whole depression less painful - like morphine.

Simply ask one addict what happened once the morphine runs out?

Gold Technical Outlook

Weekly Chart

A flow of good economic news streamed and buoyed investors with great confidence to shift their investment to stock market. This includes an optimist fed official’s remarked that stocks are not “overvalued” which is laughable. Correction and further selling pressure continue into 2014, with no respite as large volume selling dominates the market place. We continue to see lower gold prices, possible reaching as low as $ 1100 or beyond that at $ 1040. The weekly downtrend remains solid, with a rebound as an opportunity to sell further.

Resistance: $ 1256, $ 1280, $ 1290 Support: $ 1200, $ 1190, $ 1180

Traders Notes: Flat for now. Will place a short if price break below $ 1180 targeting $ 1165, $ 1155 and $ 1145 area. Buy on the break of $ 1256 target $ 1323 area.

Short Term (1 - 3 weeks) Medium Term (1 - 3 months) Long Term (6- 12 months)
Bearish $ 1110 Bullish - $ 1408 Target $ 1500 / $ 1600

Silver Technical Outlook

Weekly Chart

Downtrend channel line remains intact and will continue to drive the prices lower for now. Only a break above $ 21.05 can spark further buying to retest resistance at $ 20.80, followed by $ 21.40 and $ 22.20.

Resistance: $ 21.05, $ 21.40, $ 21.80 Support: $ 19.85, $19.35, $ 18.85

Traders Notes: Flat

Short Term (1 - 3 weeks) Medium Term (1 - 3 months) Long Term (6 - 12 months)
Flat Flat Bullish - a potential bull run?

This article is written according to the author’s views and by no means indicates investment purpose. Opinions expressed at Sharps Pixley Ltd are those of the individual authors and do not necessarily represent the opinion of Sharps Pixley Ltd or its management, shareholders, affiliates and subsidiaries. Sharps Pixley Ltd has not verified the accuracy of any claim or statement made by any independent writer and is reserved as their own and Sharps Pixley Ltd is not accountable for their input. Any opinions, research, analysis, prices or other information contained on this website, by Sharps Pixley Ltd, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. Sharps Pixley Ltd will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The data contained on this website is not necessarily real-time or accurate. 

08 Jan 2014

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