XAU/USD & XAG/USD - Gold & Silver FX Traders Thread

Anyone notice that Silver might have made a double bottom today?

Think it might be short-lived though.

A question open to anybody:

What risk:reward ratio do you recommend for XAG/USD at present, and why?

I'm trying to establish a money management system for trading this pair. Thanks.

Where the ultrabull traders?...why runaway.....

May be of interest to Gold Traders:

http://www.thetrader.se/2012/11/30/g...traday-charts/

It is truly surprising the price of Aluminum is not higher than Gold with all the folks wearing "manipulation" tinfoil hats.

No Love for Precious Metals—Silver Gets Slammed

CNBC.com | Monday, 20 May 2013 | 1:49 AM ET

First it was gold, and now it's silver.

The metal fell victim to heavy selling on Monday, dragging gold down with it, on U.S. dollar strength and as investors turned more cautious on precious metals as an alternate investment, said experts.

"We feel silver weakness has been a liquidation trade as investors grow increasingly wary of precious metals and traders are forced to close positions to meet margin calls elsewhere," said Stan Shamu, strategist at trading firm IG Markets.

Silver slumped over 4 percent on Monday to $21.30 an ounce, leading gold down lower by 1 percent to $1,344 an ounce. At one point silver hit a low of $20.30, down 8.8 percent from the start of trade on Monday.

Shamu is not ruling out further downside for the precious metal, noting that he sees support at $20, a key psychological barrier for investors.

Warren Gilman, chairman & CEO of investment firm CEF Holdings, agrees that silver could face further downside pressure, even below $20.

"When we have short-term volatile trends, silver acts like gold, only it's more volatile, so it's not a surprise to see it come off," he said.

According to a Citi report, if silver makes a rebound back towards the $27-28 level it will present renewed selling opportunities.

"Looking further forward, after nearly a decade of rising silver prices, we expect the combination of growth in mine supply and sluggish demand to continue to keep silver prices under pressure, though volatility will remain a characteristic of the market," the Citi analysts wrote.

Gold to Follow Lower
Silver, according to IG Markets, is a lead indicator of gold, and thus, the firm believes the yellow metal will extend its declines.

Hedge funds and money managers are increasing their bearish bets against gold, according to data from the U.S. Commodity Futures Trading Commission. Gold futures saw 74,432 short positions as of May 14 - the largest short position since records began in June 2006 - compared with 67,374 a week earlier.

A combination of factors including strength in the greenback, absence of strong inflationary pressures and robust performance of global equity markets has lessened the appeal for the precious metal in recent weeks.

Gold, which suffered its biggest one-day fall in three decades on April 15, is still searching for a base said Gilman of CEF Holdings, which is becoming more difficult in the face of dollar strength. A stronger U.S. dollar is negative for gold because it makes it expensive for holders of other currencies.

The yellow metal will fall into the neighborhood of $1,250 at which point support will likely kick in, he said.
"There's still a lot of confusion regarding precious metals. The market is bifurcated between three groups - the true believers who aren't worried about short-term price movements, the Warren Buffetts who don't believe gold has any value whatsoever, and in between, the financial buyers," Gilman said.

"Today, what you see is a classic unwinding of trades by financial investors...but you're not seeing selling by the believers in gold," he added.

+ + +

Funnymentals folks, not manipulation.

Thanks for posting article. I think it's a bit of both fundies and manipulations as a few U.S States(Texas being the biggest) and countries(Germany being one) have demanded their Gold back from the FED. Just my op.

HI Guys Newbie to the thread here and finding it very interesting

It's funny reading this article and over night silver bounced to 23ish just goes to show you how tricky this metal can be

I have recently found silver as a metal to trade and having a love hate relationship with it.

Cheers keep up the good work

Good Article thanks

Welcome.

Kind of like when a basketball announcer says player has hit 14 free throws in a row and then .... clang ... a miss.

Silver and Gold day after day down closes had to have an up close at some point.

Does any one have experience in forming a picture of gold movements based on COT figures?

I was reading this article where the writer says:

"The COT chart below shows that Commercial short and Large Spec long positions have dropped to their lowest level by far for the life of this chart. This is bullish. Small Specs are out completely, which is another positive sign."

http://www.marketoracle.co.uk/Article40524.html



Just dont know what to make of it

don't have experience with COT figures, but that's a real good statics and article, interesting

gold

Marc Faber talks about manipulation and conspiracies among others things Gold - that he is bullish on for some time:

http://finance.yahoo.com/video/dr-do...125241493.html

Tin foil hat people might not agree.

Daily looks like wave 4 of 5 to me:

Silver is still in a down trend on 30m/Daily

silver charts are not clear but I think silver will stop dropping at 18 dollars for a short term. we can go to 24. after then we can see drops again.

I'll be watching usd index and usd datas. I think when usd index reaches to 88. it'll be right time to buy silver. what do you think guys?

there was some people here,sharing gold silver ratio charts, I don't know why they stopped sharing

Anyone in this for the long haul won't bother debating knock-downs. Could be a criminal cartel setting prices in London (similar to LIBOR case), or a true reflection of supply and demand. Maybe the truth is somewhere in between. Manipulation on the way up or on the way down - comes down to paper bets. Criminals will eventually be exposed whether now or looking back at history.

Silver has nowhere to go but up in the long-term, but it may be the case that your children or grandchildren are the ones to profit from the physical. If one cares about their progeny, holding tight would be the wise move. True wealth is held over generations and we do live on a finite planet. If the speculators make it worth "our" while, someone might make the calculated move to sell. Anyone selling at today's prices with the knowledge of Scientific American's assessment of precious metals would be a fool or hard up for cash.

Gold is either worthless or it is money. If the latter, eventually it will recover. No telling, but short term traders almost always lose.

I think the true believers will continue to dig in because, in all likelihood, another bull wave will come and pass some day down the road. I personally believe that whether manipulated on the way up, or on the way down, collusion to profit occurred and a criminal investigation is long overdue.

I was waiting for $1200 and then $1050, but at the moment I don't see that coming.

gold...30 may??????