Friday, 19 September 2014

Gold and Silver Price Collapse

Long Term Trend of $Gold compared with the DOW JONES Index.
Via StockCharts.Com



And now some analysis....

The first chart is $GOLD (Gold Spot Price) daily price chart.

Observations:

1. The 20 day moving average has slipped to $1260.

2. The 50 day moving average is moving downward and currently at $1287.

3. The 200 day moving average is sliding and currently at $1284.

4. The FORCE INDEX shows the strong downward force being exerted on daily $GOLD.


Conclusions:

$GOLD daily price is in bear market. Some bounce-back is possible since it is in oversold territory but the long term trend is very bearish.


$GOLD - Gold Spot Daily Price Trend


The following chart is $GOLD weekly price chart.

Observations:

1. The 20 week moving average has slipped to $1288.

2. The 50 week moving average is moving downward and currently at $1287.

3. The 200 week moving average is horizontal at $1498 and being pulled downwards by the 20 week and the 50 week moving averages.

4. $GOLD weekly price has been trading below its 200 week moving average since May, 2013.

5. The FORCE INDEX shows the strong downward force building up on weekly $GOLD. (See point 3 also.)

Conclusions:

$Gold weekly price is in a bear market that can go on for a long time to come. It is approaching an oversold condition so a slow, but temporary bounce-back is possible over the next few months but the long term trend is bearish.


$GOLD - Gold Spot Weekly Price Trend


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SILVER


The following chart is $SILVER daily price chart.

Observations:

1. The 20 day moving average is moving downward and has slipped to $19.07.

2. The 50 day moving average is moving downward and currently at $19.87.

3. The 200 day moving average is sliding and currently at $19.99.

4. The FORCE INDEX shows the strong downward force being exerted on daily $SILVER.


Conclusions:

$SILVER daily price is in bear market. It is at the oversold condition so a temporary bounce-back is possible.

$SILVER - Silver Spot Daily Price Trend


The following chart is $SILVER weekly price chart.

Observations:

1. The 20 week moving average is moving downward and has slipped to $19.95.

2. The 50 week moving average is moving downward and currently at $20.22.

3. The 200 week moving average is sliding and currently at $20.85.

4. The FORCE INDEX shows a weak downward force being exerted on weekly $SILVER. But in view of daily $SILVER, it may not be wrong to conclude that the downward force on $SILVER will continue.


Conclusions:

$SILVER weekly price is in bear market. It is slowly approaching an oversold condition so it could bounce-back a little, but the overall trend is very bearish.

$SILVER - Silver Spot Weekly Price Trend

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