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

With gold trading above the $1,700 level and silver around $33, 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")

September 12 (King World News) - Gold: Beginning to Lift - Exactly one year after the August 2011 price peak at 1,900.23, the corrective / consolidation process for Gold spot price (GOLDS-1,656.50) appears to have come to an end (see Figure 18). With price having lifted out of the triangle noted herein last month, price slowly is addressing, and working through the sequential levels of resistance, with 1,641 achieved, the 200-day Moving Average (MA) and the 2011 downtrend penetrated.

Assuming these levels hold, the next major resistance is 1,700, through which the target becomes the higher resistance at 1,800 from late 2011 into early 2012. Beyond that, the 2011 high becomes the only obstacle to achieving new highs. Outstanding still is our former target at 2,000 which could soon be restored to the table.

The weekly momentum model (not shown) has turned positive, putting the wind at Gold’s back, if the recent advance holds.

The renewed fear of further liquidity on the part of the Fed weakened the U.S. dollar (until the next crisis?), at least short term, from its perceived safe-haven status. Gold and the dollar generally move in an inverse relationship. Therefore, were a renewed crisis to result in a dollar rally, Gold might reverse its current gains. Support at 1,600 should be monitored in this event.

Silver – Following Gold’s Lead?

After three months of bouncing along the 2008 uptrend line, Silver spot price (SILV-30.75) has lifted to exceed the first price resistance and 200-day MA resistance by moving through 30 (see Figure 18). Both daily and weekly momentum models have turned positive, suggesting that the liftoff can continue. The next resistance / target lies at 35-37. The ability to scale that level would leave 40 as the next target and formidable resistance prior to challenging the old closing high at 48.44. Support can be found at the 27-26 level.

This is why institutions and 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 was 47 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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