Silver Stocker For Entertainment Purposes Only.

It looks like all the chit chat about imposing tariffs is taking its toll on everything but the dollar and bonds. So how much gold damage can we expect? If things do not turn at this level, quite a bit. Notice a death cross will occur this week as there is enough momentum in the charts to assure that event and price has penetrated the up trending support line. Horizontal supports shown are at current levels, and two roughly $25 increments lower. RSI is nearing over sold.

Good posts on silver and gold Chartist. This action does not pass the smell test for me. ECB keeps interest rates at zero and the Euro swoons wrt US$ immediately, while the expected response is a bump in PM's. It is a full 24 hours later that PM's tank. Two major news events occurred, the DOJ IG report and trade sanctions. The report confirmed what we already new with more damning evidence, but basically whitewashed or attempts to protect their own with no criminal or even disciplinary referrals, a very sad reflection on the internal workings of the department. It took overnight to digest that material and that should have been gold positive. The tit for tat trade sanctions are probably going to get worse before getting better restricting commerce slowing money velocity thus depressing for gold prices. Countering is diminishing need for other countries holding dollars meaning more dollars should return to the states to chase fewer goods and services, an inflationary push. So why the big swoon? I do not know. Maybe there will be more light as the bloggers have a go at rationalizing what is taking place.


One more important development last week was the fed taking the 5 basis point positive bias off member banks depositing excess reserves with them. This is a subtle but firm push for banks to lend more and with 10% reserve requirement, it is a powerful money generator. This was reflected in a minor way by PM's Wednesday and into Thursday.