Gold: A Bounce (If Not an Outright Upside Reversal)

Posted by Mark Leibovit

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METALS – ACTION ALERT FOR GOLD, SILVER, PLATINUM, PALLADIUM and COPPER – BUY – WITH A VIEW THAT GOLD WILL BE TRADING AT LEAST $5000 OR HIGHER BY THE END OF THE DECADE AND COMPARING RISK REWARD, I.E., RISK TO 1000 AGAINST THAT UPSIDE POTENTIAL. DOLLAR COST AVERAGE!

STILL LOOKING FOR A BOUNCE (IF NOT AN OUTRIGHT UPSIDE REVERSAL) TO FIRST 1335 AND THEN INTO THE 1500s. OWNING GOLD IS AN INSURANCE POLICY AGAINST A COLLAPSE OF THE WESTERN BANKING SYSTEM ESPECIALLY CURRENCIES AND THE LIKELIHOOD OF BOTH WAR AND GREATER CIVIL UNREST AHEAD ACROSS THE GLOBE – ALREADY UNDERWAY.

I HOPE YOU HAVE PLAN ‘B’ IN THE WORKS! THAT PLAN SHOULD ALSO BE TO GET YOUR MONEY OUT OF THE BANKING SYSTEM. YOU DON’T WANT TO END UP BEING A CYPRIOT DO YOU?
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Spot gold closed at 1283.80 down 2.00 after touching 1291.53 on Monday and 1298.55 last Friday. On Jun 28 we traded down to 1186.40. Next upside ‘bounce’ targets include 1335 and eventually the 1500s. That said, there is still theoretical downside risk into the 900 to 1000 range. Until she bottoms we cannot take our eye off the ball. A summary of upside resistance include: 1275.00, 1335.00, 1420.60, 1489.10, 1520.00, 1618.50, 1650.00-1663.20, 1698.80 and 1796.70 from October 4, 2011 to make a call for a breakout above the September, 2011 peak at 1922. 
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Spot Silver was down .01 at 19.96. We traded at 20.28 intraday Thursday, July 11. The June 27 low was 18.31, so we’ve had a two dollar bounce! The next ‘bounce’ level is 21.15. We’re getting close! Next big potential downside target is 14.00 under the June 27 18.31 low. When and if we can clear the 24.71 peak from April 29, the next stop is 26.00. To re-establish the uptrend we need to clear 24.71, 28.20, 29.48, 32.58 and then 35.32.
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Platinum closed up 11.00 at 1423.00, touching 1426.50 intraday, a new recovery peak as compared to the recent June 28 low at 1303.00. The recent high was 1745.00 from February 2 and the recent low is 1303.00 from June 28. Next downside support (target) is theoretically at 1245.00 if we break under 1303.00. The recent big high was 1745.00 posted way back on February 7. The big low was at 731 on October 27, 2008 and the record high of 2308.80 that preceded it was back on March 4, 2008. 
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Palladium was up 5.50 at 732.50 touching 733.50 intraday. On June 10, we touched a new recovery high of 775 and then nosedived to 633.00 (the June 26 low). Under there, downside potential is next to 526.00. Big resistance is at the 791.00 high from March which would then kick in old technical projections into the 825-875 range. A little history: After trading at a 10-year high of 862 on February 18, 2011, the big low was posted back on November 28, 2008 at 154. Looking way back, however, Palladium hit an all-time high of 968.00 back in December, 2000. As you know, Palladium’s fortune as is with Platinum (and Rhodium) are somewhat tied to the economy and the automobile industry.
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The Philadelphia Gold and Silver Index – the XAU (for shares) – was .07 at 89.50. The XAU touched a new bear market low of 82.28 intraday on June 26. Next resistance is 94.40, 116.20 and 127.00. The ‘big picture’ high was 232.72 in December, 2010.
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Copper was down .095 at 3.15.00. The June 24 low was 3.0065. Next support is 2.85, the presumed next downside target in my work. Copper traded at 3.4025, a new recovery peak on May 22. Resistance is at 3.16, 3.39. 3.44, 3.48, 3.5605, 3.5905, 3.7935 and the 3.8520 high from September 14, 2012. The record high of 4.6495 was posted on February 15, 2011. With Copper being both volatile a leading indicator for world economies, watching its trend becomes very important. I have ‘big picture’ targets that begin at 4.00 followed by 4.50, 5.05, 5.55 and then possibly 7.00 over the next few years. Recall, Copper had hit a bear market low of 1.2710 back on December 26, 2008. 
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Do you subscribe to the Leibovit VR Gold Letter? I hope so. Here is the link: 
www.vrgoldletter.com