Weekly Market Report 03/10/14

This Week’s Headlines:

Gold
Is the London Gold Fix going to be replaced by computers?
Silver
Recommended Investment Commitment and Diversification

GOLD

Gold continued to move higher last week, increasing $16.60 per ounce and closing the week at $1,338.20. Gold crossed above the $1,350 per ounce resistance level last week four times, reaching a high on Monday of $1,355, but was unable to hold above that level. On the support side, Gold tested the $1,330 level five times last week and rallied higher by the close. So, it is easy to say that Gold is consolidating while building a firm base between $1,320 and $1,350 per ounce. Another bullish fact is that the volume of Gold trading continues to show increasing demand on any dip.

Gold could stay in its current trading range for a bit, but I believe it should breakout above the $1,350 resistance level by month’s end, on its way to the next resistance level of $1,381 and $1,400 per ounce.

Technical Gold Levels:

•  Significant upside resistance at $1357/$1361
•  Gold’s resistance objectives at $1381, $1400, $1415/33
•  Gold Support level $1320/22, 1300/06- bullish invalidation
•  If Gold breaks below $1268/70- very bearish

It’s become clear that 2014 is definitely going to be a great year for Gold investors. Right now, Gold is up $136.30 per ounce (11.34%) from the start of 2014. At the current pace we could easily see Gold at $1,650 per ounce by year end.

The current escalating geopolitical and military tensions between the Ukraine, Russia and western countries are the issue that has dominated the movements in global precious metal trading. This issue has the potential to be highly damaging to the world’s financial markets.

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Is the London Gold Fix going to be replaced by computers?

The London Gold Fix mechanism has been coming under increased scrutiny lately, perhaps following the LIBOR scandal whereby benchmark interest rates were manipulated in favor of some participants actually setting them. Read the complete story at http://www.mintstategold.com/investor-education/cat/news/post/londongoldfix/

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SILVER

Last week Silver traded between $21.04 and $21.74 per ounce until Friday. Then, on Friday the $21 support level was penetrated and technical traders stepped in and shorted the market, driving it down to $20.76. Just as Silver started consolidating between the $21 to $22 area and looking bullish, Friday’s trading was very disappointing. If Silver doesn’t quickly rally back to above $21 per ounce today, we will have a short term negative bias.

The Silver-Gold ratio has increased to 63.94 to 1.

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 40% of investment capital

Diversification:  Gold 50%, Silver 45%, Platinum & Palladium 5%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

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If you want to be updated on what is happening in the Gold, Silver, and Rare Coin markets any weekday, our company offers a daily blog Monday through Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

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