Welcome to illuminati silver, we tell you
the truth about silver. Today is Saturday 14th January 2017 and we
are providing our gold and silver weekly update for the week ending 13th January.
Gold rose in US dollar terms last week by $25 from $1172 to $1197, having hit a high
of $1206 and a low of $1172. In sterling terms gold finished the week at £983 that’s up
£29, and in Euros it closed at 1125 Euros that’s up 12 Euros on the week.
Silver rose by 31 cents from $16.50 to $16.81 having reached a high of $16.98 and a low
of $15.41. In sterling terms it closed at £13.79 that’s up 37 pence for the week
and in Euros it closed at 15.79 euros that’s up 0.13 Euros.
The Gold to Silver Ratio rose from 71.03:1 to 71.25:1
The Dow Jones closed on Friday at 19,885 down 5 points on the day and down 78 points on
the week, and the NASDAQ closed at 5574 up 26 points on the day and up 53 points on the
week. Brent Crude was down $1.65 at $57.10 and US
Light Crude was down $1.62 at $52.37 The dollar index stands at 101.18 that’s
down 1.04 on the week. Last week we stated that gold would be highly
resistive at $1200 and this past week proved that, as it attempted to exceed it and then
fell back below. So its important to look at what happened last week and why precious
metals are maintaining their positive momentum. On Friday there were 3 economic reports to
consider in the US: 1. Retail sales : which rose 0.6% in December
higher than the 0.5% estimate 2. Producer prices : The Producer Price Index
for December increased 0.3% resulting in a year on year increase of 1.6% – the largest
gain since September 2014. 3. Consumer Sentiment : University of Michigan
Consumer Sentiment came in below expectations at 98.1
These figures suggest that inflation is en-route. The question is of course will gold rise or
fall as a result of it. Well we must also look at the Equity and Currency
markets. There were strong quarterly earnings by banks
on Friday however the short term stock market momentum appears to be easing a little.
US Treasury’s were lower as a result of the strong economic data with the benchmark
10-year note yield rising to 2.393% which helped underpin the dollar.
The dollar index fell just over 1 point on the week and this supports to some extent
the rise in gold. Also the uncertainty affecting the Trump Presidency must come into play here.
For every supporter there is a detractor and despite various tweets from the President
–elect himself, we are not really much further forward with regard to his precise economic
policy intentions save that he wants to increase jobs and stop China manipulating markets.
This has led to some monies moving out of equities and into precious metals though this
is not a major move so far. Technical analysis doesn’t help much either
as charts tend to show that should gold reach and hold the $1210 level, then it could quite
quickly move up to $1250 level, however should it fall back to $1180 then $1150 is on the
cards. So let’s take a quick look at what the paper
traders are doing: Each day since Trump’s victory investors in
top physical gold-backed exchange traded fund – SPDR Gold Shares– have pulled money
out of the fund – each day! The losing streak was the longest on record
– 43 trading days without net inflows. After dumping 138.8 tonnes since November 9th, on
Friday gold bulls were finally convinced to jump back in, picking up just under 3 tonnes.
We suggest and suspect that this is contingency covering but could be followed by other traders.
So our short term view is, that until Trump’s policies are made clear and their impact interpreted,
we may see a little further strength in gold prices. However we wish to re-iterate our
general view and that is, unless Trump tweets something to the contrary, we will see gold
resume its previous downward trend but it may indeed touch $1220 before that happens.
Silver markets rallied during the week, however again as we stated last week encountered resistance
at the $17 level. Technical analysis suggests that should silver reach $17.20 and hold,
it may well rise quite quickly to $17.50. However again the consensus view is that I
is more likely to break down again back into $15 territory but not immediately. For the
moment, silver is likely to move in the same direction and to a similar percentage as gold
very short term. As all of us have discovered it is difficult
to predict prices in the very short term, but the main influence at the moment is dollar
strength which is to a large extent determined right now on the certainty or otherwise of
a Trump Presidency and the policies it will shortly reveal. Either way we are neither
bullish nor bearish for the next week and will wait and see what unfolds.
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Illuminati Silver owners come from a background of Banking, International Wealth Management
and Economics. Having now retired from these worlds we are not qualified to give investment
advice. Therefore, this and other productions must not be deemed to be giving such advice
and merely represent the personal views of its owners.