Gold prices were drifting lower during the trading session on the London Stock Exchange with a breather being the order of the day. Things changed dramatically when the New York Stock Exchange opened as gold prices reversed their loses, moving into positive territory and taking out the $1300.00/oz barrier to close at $1308.60/oz. Inflation adjustment aside, this is another new all time high, which gives us great pleasure to write about.

Taking a quick look at the above chart we can see that gold prices have made a new high today putting even more heat on the shorters, some of whom may cover their positions this week while others will hang on a little longer before capitulating. Also on the chart we can see that the moving averages are moving upwards in support of gold prices which bodes well for future increases as we do not want to see gold opening a large gap between its price and the 200dma thus tempting a sharp correction. The technical indicators, the STO, RSI and the MACD suggest that gold is overbought, so we should be prepared for gold to take a rest at this point. However, the world of pretend money is in turmoil with one country after another devaluing their own currency rather face the truth about their own economic mess, for which they are largely responsible.

Below is the daily chart of golds progress which can found 24/7 on Kitco.com tracking golds movements around the clock as each stock exchange opens and shuts. Like it or not though, its the United States that provides the action, the other stock exchanges are followers at this stage

Also in bounce back mood was silver, where silver prices were heading south and looking friendless for a while showing loses of around $0.40 before the silver bull awoke and charged forward reversing the loses and finishing the day on a positive note at around $21.74. As we write Hong Kong has just opened and silver is on the move again adding another $0.14 in early trading. Those shorting silver must be wondering just what went wrong as their day in the sun saw the clouds form, bringing with them a hurricane style whoosh, boosting silver prices in an unstoppable manner. Where to now you ask? Well we expect this squeeze to continue and push silver prices up to the $30.00/oz level before you can say silver bear!

Over in our options trading den they have updated the chart to show all the closed trades as of today, so you can see exactly how it is going, please click this link.

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.

We also thought that you might like to know that on Friday, 27th August 2010, we closed another successful trade banking a profit of 79.46% on Call Options on Silver Wheaton.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

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Bob Kirtley Archive

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