'Golden Cross' For Gold And Silver Signals Further Gains

09-20-2012 • From GoldCore Gold Bullion

Silver is trading at $34.31/oz, €26.61/oz and £21.28/oz. Platinum is trading at $1,619.50/oz, palladium at $663.50/oz and rhodium at $1,225/oz.

Gold fell $0.10 or 0.01% in New York yesterday and closed at $1,770.50. Silver hit $34.958 in Asia and fell to $34.27 in early New York trade and it then bounced back higher, but finished with a loss of 0.49%.

Gold edged down today due to dollar strength and profit taking as speculators and some investors booked profits on 16% price gains from this year’s low.

Gold continues to see smart money diversification as central banks from the ECB and the Fed to the BOJ have all announced ‘stimulus’ or money debasement measures which has led investors to seek gold as an inflation hedge.

All eyes will be on China as perhaps the next to announce action after today’s data showed further contraction in its manufacturing sector for the 11th consecutive month.

These are important indicators of longer term technical strength and in conjunction with the recent positive technical picture are bullish.

The 18 months of sideways-to-lower price action has “built a base”, a very large foundational base, in markets that are in the middle of two of the longest and strongest bull markets in history.

It is another indication that both markets are capable of moving higher in the coming months.