The German team re-affirm their bearish analysis of last week. They remain wedded to the view that gold will see a swift decline by the end of August. A break of the long term uptrend line at 1572 currently must be achieved to provide momentum to the move. They repeat the 1325 target with 1299 as the base support area. Silver remains sidelined in their view but could soon retest the 28.41/49 resistance zone.
Its a good technical report in my opinion. I remain bullish the precious metals but if the ECB is not forthcoming soon the window for intervension will close and a deleverging event on a global scale will ensue. Therefore i’m maintaning my longs with a little leverage for now. Those long are in good company with both Paulson and Soros recently increasing their long positions to the precious metals. We could also add David Einhorn to this club of gold bulls as his latest Q2 letter to shareholders confirmed.
I hate to repeat the ‘make or break’ line again but we are at a critical moment in asset markets here is my view. An inflection point for all sorts of asset classes. Chose a side or go even but whatever strategy you chose here be prepared to reverse and go with the money flow as, in theory, the move in either direction will be large and something not to be missed.
Here the full report care of the German team:
(6 votes, average: 4.83 out of 5)
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