At the end of 2015, most the hedge funds were giving bearish investment views on gold and silver. Some said that gold prices would fall to $800 and would never recover anytime. These very firms who said that gold prices will fall to $800 this year are now saying that gold prices are on the verge of a great bull run. Please be prudent and invest carefully. Investment trends are changing quickly. News from the UK on the exit from the EU, economic progresses of the USA and new wars fought by NATO can all affect your investment. One thing is for sure American stock markets will not be in a long term bear market for at least one year. The plunge protection team (ppt) will prevent American stock markets from falling for a long period. In case the Federal Reserve runs out of measures then we might even see a ECB style quantitative easing.
Over the past week gold and silver have mostly remained firm in the Asian session and European session only to make big one way moves after the US stock markets open. This trend may not continue today. US June private ADP numbers at 8:15 AM EST will tell us whether gold and silver will continue their bull run or see a good correction. I expect the US June private ADP numbers to come in on the higher side of expectations. I am not buying gold and silver till the release of US June private ADP numbers. Momentum is still bullish for gold and silver.
Today’s close is very important. Gold needs to close over $1360 and silver needs to trade over $2034 to rise for the rest of the month. If we have a daily close below $1360 and $2034, then gold and silver will be very volatile for the rest of the month despite bullish momentum.
This post was published at GoldSeek on 7 July 2016.
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