Gold Stymied at $1480 as April Ends

By Tom Luongo in Gold and Oil News | April 30, 2013 22:42 | Tags: , , , , ,

Chart painting or legitimate selling pressure, that’s the question I have as April trading finishes in Gold and Silver.  Friday’s high of $1485 has yet to be challenged again as the line has been drawn at $1480 per ounce.  even this morning’s bounce on the announcement of the ECB planning to cut interest rates was met with the well characterizedinfinite wall of selling to keep the price under a certain level.

Above $1485 and Gold will see more momentum players join the market to the upside as a short squeeze of epic proportions would begin to unfold. Drawing the line at $1485 continues to create the illusion of a bear market, which anyone with half a brain turned on is not the case.

The next big wave of money printing is about to crash over the markets from not just the BoJ but the ECB and the Federal Reserve.  All talk of ending QE is nonsense and serves to do nothing more than create cover for bearish action in the gold futures pits, while physical metal leaves the exchanges by the multiple-ton.

Tomorrow is the first day of delivery in silver and I have to wonder just how many ounces will not be settled in physical metal that want to be.  Silver ended the month at the unreal price of $24.30 per ounce which is the 50% retracement level of the tow day drop.  Again, a push above this level will likely take the price right back to $36 per ounce.  That will not happen without a push in gold and, at this point, Brent Crude as well, which is languishing just above $101 per barrel, helping to keep gold in check.

About Tom Luongo
Tom is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.

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