• 3 hours Canopy Growth Eyes U.S. Pot Producer In $3.4B Takeover Deal
  • 6 hours U.S. Slaps New Sanctions On Cuba To End ‘Glamorization Of Communism’
  • 9 hours The Unstoppable Electric Bus Revolution
  • 11 hours Pinterest, Zoom Launch Much Anticipated IPOs
  • 1 day Marijuana’s Bizarre Bottleneck Isn’t What You’d Expect
  • 1 day Climbing Stocks Weigh On Gold, But A Turnaround May Be Near
  • 1 day China's Economic Growth Exceeds Analyst Expectations
  • 1 day Gold Prices Fall On Record Global Production Estimates
  • 2 days Can Meditation Make A Business More Profitable?
  • 2 days America’s Biggest And Most Profitable Actually Got Tax Rebates
  • 2 days Central Bank Gold-Buying Is Chipping Away At The Dollar
  • 2 days The Three Assets That Outperformed The S&P Over 20 Years
  • 3 days Inside China’s Renewed War To Purge the Internet
  • 3 days Trump Blames Fed For 10,000-Point Stock Market Loss
  • 3 days Musk Draws SEC Attention With Another Controversial Tweet
  • 3 days The Overlooked Factor Contributing To Inflation
  • 4 days Does Capitalism Need An Upgrade?
  • 4 days Next Major Stock Market Selloff Could Spark A Bull Run For Gold
  • 5 days Telecom War Gets Messy As 5G Speed Remains Undefined
  • 5 days Commodities Are Hot Again
Trade In Counterfeit Goods Hits Half A Trillion Dollars

Trade In Counterfeit Goods Hits Half A Trillion Dollars

The counterfeit market has breached…

Tesla Struggles To Compete In European Market

Tesla Struggles To Compete In European Market

Tesla continues to catch the…

Douglas V. Gnazzo

Douglas V. Gnazzo

Douglas V. Gnazzo is the retired CEO of New England Renovation LLC, a historical restoration contractor that specialized in the restoration of older buildings and…

Contact Author

  1. Home
  2. Markets
  3. Other

Honest Money Gold and Silver Report: Market Wrap Week Ending 6/18/10

Market Wrap
Gold Liberty Coin
Week Ending 6/18/10

Gold

Gold closed at a new all-time high: $1256.60 (continuous contract). GLD made a new high of 122.83 for a weekly gain of 2.35%. The daily chart below shows GLD breaking above resistance from its May - June highs and forging ahead for another all-time high. Gold's performance has been nothing short of spectacular.

Notice on the chart that both RSI and MACD are showing negative divergences. These indicators warrant attention, as they will be resolved one way or the other: either price will continue up, forcing them up; or price will drop and align with the divergences.

As mentioned in the email alert earlier this week - price trumps all else. Indicators are derived from price, so they are secondary at best. Indicators often give false signals or are reversed, etc.

There is no perfect system or one that is even close. It is a game of percentages: you lay your money down and you take your chances. You try to control risk versus reward.

Hence, divergences are something to be monitored. They say: pay attention, something MAY be up. But in the end, all that matters is price; and if you are on the right side of the trade. Everything else is secondary.

With that being said, weighing risk versus reward: buying or taking new positions at these prices, with the current divergences, is risky business, and better set-ups will prevail.

The gold bull has a long way to go. Buying on weakness and selling into strength is a hard act to beat.

SPDR Gold Trust Shares

Gold's (GLD) weekly chart shows pretty much the same thing as its daily chart: a break out above resistance to new highs has occurred, but negative divergences can be seen in RSI and MACD.

Also, notice that volume declined significantly on this break out, compared to the previous moves to new highs. These divergences suggest that there is less conviction and underlying strength to this move; however, a new high is a new high. The divergences warrant attention to the additional risks indicated.

SPDR Gold Trust Shares


Gold Stocks

The gold stocks were stellar performers this past week, with the GDX gaining 6.44%. Some of the individual miners featured on the stock watch list for the past several months performed even better: Newmont (NEM) was up 8.89% and Randgold (GOLD) was up over 7%, while Silver Wheaton (SLW) gained 8.25%.

The daily GDX chart shows two gaps up on Thursday and Friday. Overhead resistance is directly above from the May high. Gold stocks have been performing well, but they haven't been able to match physical gold's all-time high as of yet. Open gaps usually get filled.

Market Vectors Gold Miners

The above excerpt is from this week's 30 page report, available on the Honest Money Gold & Silver Report website. All major markets are covered: stocks, bonds, currencies, and commodities, with the emphasis on the precious metals.

Dozens of charts are available and our stock watch list provides numerous investment ideas each week, while our model portfolio offers a game plan to implement them. A FREE one-month trial subscription is available. Stop by and check it out.

Good Luck. Good Trading. Good Health. And that's a Wrap.


Come Visit Our Website: Honest Money Gold & Silver Report
New Book Now Available - Honest Money

 

Back to homepage

Leave a comment

Leave a comment