Wednesday, January 30, 2013

NO EXITS - GOLD AND SILVER


CONTRACTION?
This morning's release of GDP data suggested that government spending reductions in military have caused a fall in the growth USA's GDP.  The third quarter had a growth rate of 3.1%, the fourth quarter showed a -0.1% GDP.  Inventories are building, and it looks as though alot of "income" was pulled forward to avoid the fiscal cliff and increasing tax rates.

THE FED IS HERE
Despite the stock markets being down just a tad, gold and silver are higher, why?  The reduction reaffirms what we should all know, that the Fed will never exit and cannot remove their stimulative QE which is shuffling $85 Billion monthly of Federal Reserve Notes between different assets like treasuries and MBS.

GLD
Intra-day Gold looks to really like the report of GDP contraction as it's ETF proxy GLD is bouncing.




http://scharts.co/XSeCgL

SILVER 
Silver also bounced.  The key for silver will be to clear through the $32.50 area.  Stock charts won't do an intra-day chart for commodities in my set up, so I'll have to post a chart later.


In addition, here is a view of silver that is a 1 year look.


$36.88 seems a long way away from here, but continued real action by the Fed cannot hurt.  If anything, this continues to provide a very solid "fundamental" base from where silver will mount an attack higher.


GOATMUG

Goatmug is an investor that cares about you and your family. Goatmug's Blog - Financial Perspectives From The Mountain Top is a collection of thoughts on our economy and how it impacts the lives of investors and average people. While several specific investments are named in many of his posts, these articles are simply invitations for you to do your own research and reference to these securities does not constitute financial advice. Your situation is complex and unique and you should seek professional assistance with your trading and investing. Please visit Goatmug and share your comments athttp://www.goatmug.blogspot.com/

7 comments:

  1. Posts on Slope are still welcome! :-D

    ReplyDelete
  2. Goatmug,
    Thanks for solid info as always.
    Preox.

    ReplyDelete
  3. if Tim Knights site brought you here, give me a plus 1, hehe.

    ReplyDelete
  4. testing 123, for the 100th time, rofl!

    ReplyDelete

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