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Gold & Silver range trading. Getting set for a break-out to higher levels?
|
Week ending 8th March 2013 ($USD) |
Gold |
Silver |
|
Close this week |
$1,581.75 |
$28.78 |
|
Close previous week |
$1,582.25 |
$28.01 |
|
Gain/ <Loss> % for the week |
-0.03% |
+2.75% |
|
High Close for the week |
$1,581.75 |
$29.01 |
|
Low Close for the week |
$1,574.00 |
$28.69 |
Gold and Silver remained stuck for most of the week range trading between US$1,575 and US$1,580.
The 'Shorts' are winning for now with the trend-chasing Money Managers holding significant short positions, reported to be amounting to more than 193 tonnes of Gold between 49 Managed Funds. The point is they have to buy back these positions some time soon.
Meanwhile, the Bullion Banks confirmed that they have lowered their short positions to the lowest level in 3 years. Several Central Banks (Russia, South Korea and Kazakhstan) were accumulated physical Gold during the week.
Mid week the Dow soured by another 125+ points pushing equities higher in Europe and Asia. The European Central Bank chief Mario Draghi confirmed they are in no hurry to cut interest rates despite lowering their growth forecast for 2013. Bank of England and Bank of Japan also said they would not conduct further easing operations for now.
These sentiments helped keep Gold's upside in check.
Another relatively quite week expected on the news front.
Summary:
Who do you support, the trend chasing Money Managers or the Bullion Banks who actually hold physical stocks of significance?
The biggest factor right now is the buy-back that will be required for Money Managers to close out their bigger than ever short positions. When this happens and it will, there is likely to be a solid lift in the price of Gold, with Silver following.
Range trading may well continue into next week, but watch out for a move!
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