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SHARPS PIXLEY Gold and Silver Daily Predictions


Short Term: Gold ended the week on a positive note but again failed to break 1700 which we last mentioned. Gold initially rose to 1695.05 and no significant follow up buying which raise caution. Next week, we could see gold testing for support around 1675 and 1669 area again before a clear run up. 4 hour chart shows buying pressure is easing after a good run from this month’s low of 1635. We look to short the market at 1678 with a target at 1670 to 1665 area (accompanied by a tight stop loss). The order will be invalid if prices move higher than 1700.

Medium Term: There are still potential for prices to test 1700 by next week with option expiry as well as increase buying interest in gold ETFs. Weekend rumour has it that gold price is determined by the Chinese economy. Our thoughts spans out to the more troubling area such as the potential island dispute between Japan. Japan continuous claim on the island has escalated a possible war. We look for gold to break 1703 and target the higher end of 1735. Otherwise, gold may take another breather and in search of support before moving higher. We heed caution as the daily chart signals some indecision and possible selling pressure.
For now we monitor the current development and could well short the market. A break of 1700 would give it room to test 1715 area but caution remains as it failed to break 1700 after all.    


Short Term: For the short term, we look for silver to consolidate its current gains. Silver rose to a high of 32.14 but unable to hold on. Upon reaching the top of the Bollinger band it came down and it seems another breakout is possible.  The signal shows prices may well consolidate further but some weakness could appear if silver break below 31.60 area. At the moment, staying on the side line could be a better option for us to study where we can enter this volatile market again.

Medium Term: The recent development on the daily signal shows lack of buying momentum on silver. However, we do not want to discount the fact that there is a huge inflow on silver ETFs that may significantly lend support on the current prices. At the moment, we are still bullish unless silver turn back below 31.00.
Staying on the side line and watching the development on silver prices. Looking to buy again on the dip.    

Economic Views

Currencies Value Change comment
Euro 1.332 Concerns are escalating regarding Cyprus bailout while Spanish bond is on the rise again.
AUD 1.0508 Australian dollar seems to hold up well after the Chinese GDP.
JPY 90.00 Weekend news remain positively to make the Yen weaker possibly 90 - 95 before some sign of abating.
US Index 80.03 The strong US dollar put a brake on gold and silver rally.

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.

Robert Jilles
Sharps Pixley, London

21 Jan 2013 | Categories: Gold, Silver

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