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Golds Slow Grind Begins

Monday January 13, 2014 13:48

What an amazing week.  Biotech companies are starting to light up like some tech stocks in the late 90’s but they are still so cheap here, and moving huge!

Who knows what the future will bring but when stocks move, my job is to identify them and understand their behaviour quickly and capitalize on it.

So far it’s a stunning start to 2014 even while markets are not moving too much to the upside.

I haven’t been focused on the markets except for general sentiment for a while now since stocks have been much better for the account.

We could be in for something very, very special over the months and year or two ahead but that’s getting ahead of myself a bit.

I can’t predict, nor do I try to, the future but the past has been kind, especially the past year or so.

As for the precious metals, they had a solid week as to be expected after putting in a double bottom on the last possible day of 2013 but they are not where the money is at the moment.

That said, it’s not a bad place to add to or begin a physical metals position as I’ve said here recently.

Let’s check out the precious metals charts who are great, but very slow as they should, be at the moment to start this next long-term leg up.

Gold rose a nice 0.78% on the week.  A nice move but nothing I’m interested in with so many stocks moving in a big way.

Gold has a lot of resistance levels and that will really slow it down in the years ahead but it is what it is, as much as I hate that saying.

First up is now at the 50 day moving average.  Then we have $1,260, then the downtrend line, then $1,280.

Don’t kid yourself.

Just because gold has put in a double bottom doesn’t mean it’s going to the moon right away.

It’s going to take a long time, years, before we see new highs but when we do, the breakout should be explosive.

Silver gained 0.26% this week and is about to break it’s long downtrend line here.

Silver has some resistance at $20.50 but it shouldn’t take more than a few days to break that and move it towards much more significant resistance level at $21.50.

Great action so far as it follows gold off it’s double bottom.

The slower the better as we move away from this low.

Platinum rose 1.66% this past week and is moving nicely away from the $1,420 resistance area.

The 200 day moving average is here and should be a little resistance but this move looks like it will take us to $1,460 before any major consolidation of more than 3 days.

Great action for sure as this and the rest of the precious metals follow golds lead.

Again though, these are not my focus.

I am focused on what will make me the most money and precious metals are not that at this time.

Palladium rose 2.54% for the week and showed great action after consolidating under $745 and now breaking out.

We shouldn’t take too long to move to $765 now.

All in all, the metals are working great but personally I’d not try to trade it, rather, I’d accumulate physical metals.

Enjoy your weekend after this spectacular week and hope for more.

When things are good it’s time to really focus.  You can literally make your year in only a few weeks or less.

By Warren Bevan



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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