A look at charts for Gold for the week. The expected correction for Gold at 1110 to 1070 never happened. It is an extremely bullish signal in my view. I would have preferred a correction so that I could have got my hands wet …But am not going to buy unless I get my price. Till then its happy riding for the bulls.

I read an interesting thesis on one of blogs that we could have a world where dollar and Gold/Silver will rally together while equities will take a back seat. It look rather impossible but that is why the contrarians are always the king makers.

On Friday late market hours was an incredible sight to behold, as I glued to my screen, waiting for a strong Gold crash to at least $1120, instead it roared from 1142 to close above 1150. We have seen over the past how Gold is dumped towards Weekend later market hours. This around the supply was sucked in seconds. A word of caution though. RSI is extremely overbought but the important thing is that is simply no reversal or topping pattern. People who want to buy physical Gold can buy at these levels and you will make a lot of money. Beware speculators, if correction does happen it will wipe out a lot of guys.

The chart for Silver looks very enticing:
I hold Silver and I would like to state Jim Rogers here: Buy value at a cheap price. Silver is definitely value and it is super cheap. There are two more light resistances to cleared for silver which are located at 19.5 and 21 But having seen Silver crossing 17.5 with such force, is a very bullish sign that these 2 levels will be taken out relatively easily before year end.

I will be making another post about the supply and demand situation in Gold and if the fundamentals are supporting a further move up.

Fresbee
Investing Contrarian