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Turk continues:
“One of the things that I look at Eric is the demand for physical metal. Interestingly, when we broke above $1,550 last week there was a noticeable fall in demand from Asian buying. But the Asians have come back into the market and they are underpinning gold here at $1,500. With option expiry over and Asian demand strong once again, we can assume there is a floor under the gold market at $1,500.
Even though we are below $35 on silver, I still see this as a test of that support and I would not be surprised to see a quick snap-back to $35 within the next few days. With the three day holiday weekend ahead of us I’m sure the shorts are already thinking about covering, particularly because there are so many trouble spots that could blow up at any moment that would cause a rush to the safety of precious metals.
When asked specifically about what is going on in Europe Turk had this to say, “We’ve got civil disobedience growing in different countries. People are becoming fed up by bad decisions made by politicians that favor bankers rather than taxpayers....
Continue reading the James Turk interview below...
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“I don’t know how this is going to end up Eric but one can sense the growing tension as the hot summer months approach. It’s very reasonable to expect growing unrest. It’s not just Greece and Spain, over here in the UK a big strike is being planned for Thursday. This is the type of union activity that is common place during periods of significant inflation.
People just have not come to grips with the fact that governments are running out of money, which brings to mind my favorite Margaret Thatcher quote, ‘The problem with socialism is that eventually you run out of other people’s money.’ There is also a great deal of non-union tension as rising costs are continuing to erode people’s living standards.
Back to gold and silver, I actually like the action of the gold/silver ratio, yesterday it closed at 44.5 so it is back at support. This is a further indication to me that the correction has reached its nadir. The interesting thing about corrections like this Eric is how rapidly bullish sentiment evaporates even while the fundamental factors driving the metals higher this past ten years remains very favorable.
In fact with bankruptcies of governments becoming more and more likely, the reasons for owning gold and silver have become even more pronounced. Summer has only just started, but I still see this as a summer that will be like 1982, one for the history books.”
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Turk - Summer Gold Trading Will Be One for the History Books
With continued volatility in gold and silver and the US dollar falling back to the 75 level on the index, today King World News interviewed James Turk. When asked about the action in gold and silver Turk stated, “What we are seeing right now is a double-bottom in silver with gold staying strong near $1,500. With options expiration on both exchanges now behind us, we can expect a bounce from here.”
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
June 28, 2011
