Gold Prices Observations 19 May 2010
Tuesday, May 18, 2010 at 06:56PM
Gold Prices in Gold
USD Chart 19 May 2010.jpg

The volatility continues across the markets and is aptly demonstrated here by the USD which started the day heading south and then bounced to gain 1.39%. Gold prices drifted lower in Hong Kong and in London before heading higher in New York as the chart shows. We have warned about volatility increasing and becoming the order of the day, so hang on to your hard hats and your position in the gold and silver sector as they will reward you in time.

Going forward get used to the idea of $100/oz movements per day in gold prices and say $2.00/oz per day for silver prices, then you will not be taken by surprise and not shook out of your position. We are heading into the summer season which can be a little lacklustre in the precious metals space, however, with the European pantomime going from bad to worse this summer may be a tad more active than usual. The new government in the UK will no doubt open the books and shock horror, the financial skeletons in the cupboards will come life with alarming frequency having a knock on effect on the pound. The race to the bottom for currencies will gather pace and now appears to almost unstoppable, the pound, the Euro and the US Dollar are all in deep pooh.

Gold Chart 19 May 2010.jpg

In a missive from Jim Sinclair today he summarised the action as follows:

The euro below $1.20 would strongly suggest Chairman Volcker is right on the subject.
The euro below $1.10 would confirm that Volcker is correct.
Presently there is key support at $1.2150.
The euro today traded as high as 1.2448 and dropped below $1.2150 trading now at $1.2202. That is outrageous activity for a major currency
There is no central bank nor is there any intervention that can stand against the tool of credit default derivative swaps. Gold is you're only safe harbor.

Keep smiling its all falling into place for gold and silver bugs.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

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Accumulated Profits from Investing $1000 in each OPTIONTRADE signal 14 May 2010.jpg

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