Gold & Silver Price Back To 50 Day Moving Average

Now that they have covered a large number of those shorts ( bought them back) there is simply no additional source of buying on a large enough scale to take the market through important overhead chart resistance levels. Large speculators do not have any technical reasons to chase the price of the metal higher and thus they are NOT ENTERING this market in large numbers. Without thrust to counteract the pull of gravity, markets will tend to follow the path of least resistance and that is lower. It will take some sort of economic data news release to trigger any strong, concerted, and more importantly, SUSTAINED NEW BUYING.”

The mining shares have been lagging lately as well. GDX is trading at 25.26 while it briefly touched 30 only two weeks ago.

Full focus will be on the Fed meeting next week Wednesday and Thursday. The Chairman, Bernanke, will do a press conference after the meeting. Some expect that tapering will be announced, as it is the last press conference during Bernanke’s term in which he could announce such a decision. Expect more price volatility going forward.

This article is brought to you courtesy of Gold Silver Worlds, who advocates to own physical gold and silver outside the banking system.

Related: SPDR Gold Trust ETF (NYSEARCA:GLD), iShares Gold Trust ETF (NYSEARCA:IAU).

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