Industrial-Strength Growth

September 2, 2014 - 4:52pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

We were stopped out of our long positions in both gold and silver today.
Long gold at 1290, out at 1272 -$18.00
Long silver at 19.57, out at 19.27 -.30

Gold Market Forecast

According to Bloomberg news, today's dramatic drop in gold prices can be attributed to U.S. manufacturing's expanding at the fastest pace in three years.

However, this news was absent as gold traded substantially lower in Australia, Hong Kong and London in overnight trading last night. As far as I'm concerned it is all about the dollar and the tremendous strength that we have witnessed in the greenback.

Over the last few weeks we have been speaking about a dynamic compression in range with a series of higher lows and lower highs. It was our belief that as we hit the apex of that triangle we would see a dramatic breakout. We also believed that the breakout would be to the upside. There is no doubt we did get a breakout; there is also no doubt that the breakout was to the downside and we were incorrect in our trade assumptions.

That being said, what kind of real long-term damage have we seen in the charts with this most recent decline, and where are gold and silver prices headed from here, are the important questions. We will look at those fundamental questions on today's report and dig deeply into the charts this afternoon and evening to ascertain as best we can the answers.
 

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