Gold closed lower as expected after the central/bullion bank raid. In the process a lower low was made that effectively neutralizes the up the former up trend. Price found support at the 18 day moving average after making a low very near the lower line of the Andrew’s Pitchfork. In the pre-market gold is substantially higher, so support at 1819 appears solid. Resistance will be the Bollinger band at 1899 followed by the all time high at 1923. All technical studies are neutral. Intervention by the Banksters is effective over smaller and smaller time frames. Soon enough it will not work at all because their power is power over paper. When confidence is lost in paper gold, real gold will go into hiding and will be hoarded. Price will explode. The central banks are attempting to manage the price lower to enable the flow of gold to where it needs to go, to the middle east and to the central banks themselves.
PHYS, the real and 100% allocated gold bullion fund, gapped down and found support at the 18 day moving average. The premium to net asset value share price shows in the chart with price closer to the median line of Andrew’s Pitchfork. Resistance is coming from the Bollinger band and the last swing high, both at 16.70. This fund will continue to build premium as people are waking up to the reality that physical gold is different and preferred over paper gold in funds such as GLD.
Silver had a better day than gold and closed well off the day’s low. As with gold, silver also found support at the 18 day moving average after making a low very near the lower boundary of the trend channel. The 40.5 support level now has 2 swing lows that reversed there, therefore it can be considered to be fairly strong support. Resistance is the last swing high at 43.5, with additional resistance coming from the Bollinger band just above there at 43.73. Technical studies are all neutral. Silver continues the consolidation and bodes really well for a sustained move back to the highs around 50.