What precisely was the trigger for the sharp price increase remains speculation. It might be the failure of the European budget discussions;
As Dan Norcini points out in his commentary: “One thing to help keep in thoughts about this really is that pit locals are notorious for utilizing these ultra thin trading conditions to go hunting for upside or downside stops. Since there is not the depth of liquidity that is usually present in the marketplace, resistance to their hunting party efforts is minimal.
What this means for chart watchers is the fact that one has to take the price movements with a bit of wholesome skepticism. If the move is for real, it will hold around the resumption of trade during the next trading period. In our example - gold will need to stay above its breakout level of $1740 during each Sunday evening trade in Asia and throughout Monday trade right here in the US.” Rare Coins, Silver Coins, Gold Coins, Learn More >> http://www.silverdollar.cc/
When taking a look at the every day chart, we see that the gold and silver price broke above all key moving averages as a result of Friday’s powerful price action. The 50 day moving average appears like it is sloping positively once more and the MACD is gaining traction. These are obviously powerful signals, as a lot of trading is influenced from the moving averages. We are also nowhere near overbought territory. The high level technicals look great around the price charts.
Now right here it gets interesting. Another way to look at gold is expressing the equity prices in gold. So how is gold doing compared to the stock market? Well, the charts tell it all. The Dow Jones to gold price ratio is coming down and is near record lows in gold’s present secular bull market. As many have pointed out, the expectations are that the ratio will hit a worth close to 1:1 at the heights of the bull marketplace. Whether or not it is 6,000 or 12,000, both the Dow Jones and also the gold price are evolving in the direction of a comparable price point. The ratio hit its lowest point in September of 2011 when it stood at 7.12, after gold’s parabolic move till $1,900. As of Friday 23rd November, the ratio stands at 7.48. My suggestion is to buy gold and buy silver now to protect your wealth from financial storms that are upon us. How High Will Silver Go? Learn More >> http://silver-