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Yamada - Here Are The Key Levels To Watch On Gold & Silver

With gold trading near the $1,800 level and silver around $34.50, today King World News is pleased to share a piece of legendary technical analyst Louise Yamada’s “Technical Perspectives” report. This information is not available to the public and we are grateful to Louise for sharing her incredible work with KWN readers globally.

Metals: Gold & Silver

By Louise Yamada Technical Research Advisors, LLC ("LYA")

October 3 (King World News) - Gold spot price (GOLDS-1,772.10, see Figure 11) followed through on the breakout and moved through the first resistance of 1,700, moving close to the next target / resistance at 1,800 for an 11% advance. A well-deserved rest may be at hand, either for a sideways consolidation or a pullback that could carry toward 1,750 or even toward 1,700.

Price has regained the 2008 uptrend and the 50-day MA has crossed positively above the 200-day MA, with the weekly momentum retaining a strong Buy (as in 2008, see arrows) to suggest a renewed advance is underway.

An eventual move through 1,800 would suggest a test of the high and the possibility of moving toward our longstanding target at 2,000. The important support levels remain at 1,600-1,539.

Gold Adjusted for Inflation

Former resistance levels are generally important hurdles for price to overcome, and worthy of note is Gold history, adjusted for inflation in current dollars (see Figure 12). The adjusted price of Gold is now addressing the former 1980-1981 highs (800-850 dollars at the time). Therefore, it would not be surprising for Gold to do some further sideways consolidating before fully being able to penetrate those formidable levels before setting new, all-time, inflation-adjusted highs!

Silver spot price (SILV-34.54, not shown) also rallied into the resistance / target at 35 before taking a breath. Pullbacks toward 32, even 30 could be forthcoming if the sideways action weakens, but the eventual potential to break through 35 and move toward 40 remains in place as long as 30 is not violated.

This is why institutions and wealthy investors pay Louise for her research. She called the breakout in gold and silver real-time and suggested the move would continue. That’s exactly what we have seen unfold in these markets. Her latest report is 43 pages and covered key markets from all over the globe.

As Managing Director and Head of Technical Research for Smith Barney, Louise was a perennial leader in the Institutional Investor poll, and was the top-ranked market technician in 2001, 2002, 2003 and 2004, before going independent. To subscribe to Louise Yamada Technical Research Advisors, LLC ("LYA") CLICK HERE.

Eric King

KingWorldNews.com

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