Originally published in the Metals BullBear Weekly Report released on 2/25/2015. Partial excerpt only. Written by @AKWAnalytics.
The precious metals complex has been moved to the backburner of the global finacial stove once again as the pullback continues. Now that gold has recently broken the 1200 $ level a few times, we think it is likely that the market pushes lower still, perhaps down to the 1170 to 1180 $ area.
Don’t get too discouraged, though! There is a light at the end of this tunnel. First, the fundamentlas of the shiny metals remain intact as global central banks continue to purchase record amounts of bullion, and the ECB will start QE in the next few weeks which should keep demand elevated for the foreseeable future. Additionally, India has been slowly loosening thier import grip on gold imports, therefore we should see steadily increading deman coming out of that region.
Technically speaking, silver still has some work do to before getting a nice bid to the upside. That being said, gold is already looking ready to bottom, albeit at lower levels, and therefore we have identified what we think is a very favorable risk/reward trade setup going into the first week of March. We outline the details of the setup and the trade itself in the Gold section below, and we think the case is quite compelling.
All in all, we like “quiet” periods in commodity markets because they provide a glimpse into the true nature of the market via the charts. It is during times like these that we tend to find our most favorable and rewarding trade setups.
Cheers,
@AKWAnalytics
Gold Daily chart
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