July 28, 2010 USA Market Close - Gold Silver Forecast Outlook
August Gold closed higher due to short covering on Wednesday as it rebounds off the 50% retracement level of this year's rally crossing at 1158.30. Stochastics and the RSI are bearish hinting that additional weakness is possible near-term. If August extends the decline off June's high, the 62% retracement level of the aforementioned decline crossing at 1132.70 is the next downside target. Closes above the 20-day moving average crossing at 1196.40 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 1184.90. Second resistance is the 20-day moving average crossing at 1196.40. First support is today's low crossing at 1155.60. Second support is the 62% retracement level of the aforementioned decline crossing at 1132.70.
September Silver closed lower on Wednesday while extending this month's trading range. The mid-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near-term. If September extends the decline off June's high, June's low crossing at 17.230 is the next downside target. Closes above the reaction high crossing at 18.535 are needed to confirm that a low has been posted. First resistance is the reaction high crossing at 18.280. Second resistance is the reaction high crossing at 18.535. First support is today's low crossing at 17.325. Second support is June's low crossing at 17.230.
In May of this year, gold futures marched up to a historic level to just under the $1,250.00 level at a time when history has shown that many commodities, including gold, often do not advance in price in times of economic weakness and reduced inflation fears. Some analysts have argued that demand from hedge funds and exchange traded funds artificially and temporarily pushed gold futures to historical highs. There may be some truth to this line of thinking. However, there are some better reasons that can be used to explain the strength in gold futures. A possible explanation for the recent strength in commodities, in general, including gold, may be due to the growth of the federal budget deficit in the U.S. Expenditures for the military continue to expand and there appears to be few on Capitol Hill that are calling for fiscal restraint. In spite of recent U.S. dollar gains, the worsening projections for the federal budget deficits and the national debt are not supportive for the long-term outlook for the greenback and therefore, remain bullish long-term influences for gold.
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Gold Silver Buy Recommendation
Starting now and into the long term we suggest you purchase small fixed amounts of gold and or silver on a regular monthly or quarterly basis. In the short term gold and silver can have up and down price swings, so scaling in purchases over time reduces price volatility risk. Long term precious metals look to be going higher as they already have been, as the central banks of the world have already printed and are still printing so much paper money, the devauling debasing affect on world currencies is decreasing their value at a rapid rate. The next financial crisis may very well be a currency crisis, which looks to be already happening. Protect yourself now and start investing in gold and silver by purchasing gold silver futures through a precious metals trading account and or purchase gold silver bullion and or coins directly.
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Why Own Gold and Silver?
One of the first main reasons to invest and own precious metals is to stay ahead of inflation to protect your purchasing power of paper currency. If and when hyper-inflation comes as we and many others predict, precious metals should become much more valuable than they are right now.
Shop Best Selling Gold Silver Coins and Protect Yourself from Financial Crisis and Inflation Gold and silver are the most popular precious metals investments, especially in times of financial crisis. Investors buy gold and silver as a hedge or safe haven against economic, political, social or currency-based crises, like what is happening right now. These crises include investment market declines, burgeoning national debt, currency failure, inflation, war and social unrest.
What Is Inflation?
Inflation is a constant, persistent, rise in the prices of things related to an increase in the volume of money and resulting in the loss of value of currency.
Many countries around the world right now are printing money at double digit rates for a variety of reasons. One main reason is to try to stimulate their economies back to good health again. Its this exact action that helped lead to their financial problems to begin with. In time this excess credit hyper-inflation approach could collapse currencies and the only currency left worth any value could be gold and silver.
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Central Banks of the World
The global central banks are continuing to print more and more paper money to stiulate their economies, which is one of the main reasons why the financial crisis started to begin with and which has a devaluing affect on their paper currency money in the long term.
The national debts of the USA and other countries around the world are at historical high exponential levels now. The warning signs have been around for a long time. In the past the markets seemed to not care about this fact. Its seems now with the financial crisis in full force, the markets and investors are paying more attention. Very possibly millions of people around the world holding paper currency could lose everything they have worked for their entire lifetime. Could this really happen? Not only could it happen, its already happening.
Low-Risk High-Reward Investing Trading Returns Start with Diversification
Long term low-risk high-reward investing starts with diversification. This saying is true, "Don't put all your eggs in one basket in case you drop the basket ". The same holds so very true with money and in investing. Diversification spreads out and lowers investment risk. In case one investment goes bad, its not so bad to your total investment portfolio if you place your entire amount of money into one investment.
Who is Buying Gold and Silver?
Half the worlds population of China India and the Middle East people have been and still are lining up to buy precious metals. USA and Europe are starting to catch up as the brutal economic crisis continues to hit them now with high debt, and high unemployment rates.
Gold Long Term Forecast
Inflation adjusted, gold is still well below its all time highs it reached in 1980 at $895 per ounce. With the global financial crisis right now and moving forward, the world may easily see gold prices going up to $2500 or much more. 60 year old billionaire investor Dr. Marc Faber of the Gloom Boom Doom Report has made a gold prediction of, "I feel that I will see $10,000 gold in my lifetime".
Hedge Your Investments and Protect Yourself
Whether you think everything is fine or the world is going to hell in a handbasket, its always a good idea to own a little gold and silver in case your wrong about an optimistic future, and a lot in case currencies devalue big time, and gold silver do go up big as currently forecasted.
Financial Markets Risk Warning
Trading the financial markets such as the stock market,
stock options, commodities, futures, and forex foreign
exchange on margin, carries a high level of risk,
and may not be suitable for all investors speculators
and traders. Before deciding to trade any financial
market, investors should carefully consider their
degree of knowledge, monetary goals objectives, trading
plan preparations, money mananagement, position sizing,
and risk tolerance. The possibility exists that investors
could sustain a loss of some or all of their deposited
funds, and therefore investors should not speculate
with capital that they cannot afford to lose. Investors
should be aware of all the risks associated with financial
market trading, especially leveraged margin trading,
and seek advice from an independent financial advisor
if they have any doubts. Past returns are not indicative
of future results. For more information contact the NFA - National Futures Association
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