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Here is what top Citi analyst Fitzpatrick had to say, along with some powerful charts: “We’ve had the move up and we got very close to that $1,791 level I had projected (gold hit $1,790). But it’s been a fairly quick move over a short space of time. We also get a bit of a push on the backs of the announcements of additional QE, but we do look to be losing a little bit of momentum short-term.
We had a very indecisive week last week, and so far we have a bit of a down dynamic to this week. So it wouldn’t be surprising, given the speed of the move, that we see a little bit of a consolidation, a little bit of backfilling.
The real key is to eventually get that weekly close above $1,791, which will propel gold higher....
Continue reading the Tom Fitzpatrick interview below...
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“But for the moment we could see a period where we consolidate, and maybe see a little bit of a retracement.
Given where we’ve come from, gold has risen from almost the $1,500 level to the $1,800 area, could gold retrace back down to $1,675? It’s not at all impossible (see chart below). In the overall scheme of things it would just be a decent backfill.
That might turn out to be too aggressive because the pull back could well be much more shallow than that. But anybody who has participated in this gold move has seen a gain of $200 in a space of just weeks. So we may see some profit taking in gold at this point.
The problem is that gold has advanced so rapidly that we don’t have a lot of support levels to look at. But the level where gold advanced after the Fed’s decision was $1,720. Gold advanced $50 after the announcement of more QE, and that area at $1,720 may well provide support on a retracement. If we see $1,750 give way, then I think $1,720 is a likely level in terms of a squeeze lower.
When it comes to silver, it is possible we could see a retracement back to the $30.50 to $31 breakout level (see chart below). We also had silver advance from the $32.70 area after the Fed announcement, so that could very well act as support.
If we get an anti-risk environment where equity markets shake a little bit, this could add to the profit-taking scenario in both metals. This is why, at the end of the day, $1,791 is the key to the momentum of this move. For right now, that $1,791 level on gold has held.
So certainly if you are trading gold from a short-term perspective, number one we wish you luck because trading gold, like anything else right now from a short-term perspective, is very difficult, but if you are trading gold from a short-term perspective, there could definitely be a danger that you could see a squeeze to the downside.”
© 2012 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.
The interviews with Rick Rule, Nigel Farage, Ben Davies, Dr. Keith Barron, Jean-Marie Eveillard, Bill Fleckenstein, and Egon von Greyerz are available now. Also, be sure to listen to last week’s line-up of other KWN interviews which included and Felix Zulauf, Rob Arnott, Michael Pento, and Gerald Celente, by CLICKING HERE.
Eric King
What To Expect Next After The Recent Surge In Gold & Silver
Today Tom Fitzpatrick spoke with King World News about the recent action in both gold and silver. Fitzpatrick has been incredibly accurate in forecasting the movements of gold and silver. He has been noting $1,791 as a key level in gold for some time on KWN, and remarkably gold went almost to the dollar to that number, hitting $1,790 before pulling back. Now Fitzpzatrick lets KWN readers know what to expect next.
© 2012 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.
September 26, 2012
