Welcome to Illuminati Silver, we tell you
the truth about silver. Today is Sunday 23rd August 2015 and we are
going to address the FOMC Minutes announced last week and our views on where the gold
and silver prices are headed over the coming weeks.
In our last video we stated that we felt that for the time being at least, Gold will maintain
a floor of around $1100 and Silver at $15. These floors broke for one day and then the
prices rose again ending the week with gold up nearly $46 or just over 4% at $1161 and
Silver up 7 cents or just over 0.4% at $15.32 Certainly gold outperformed silver and we
have no doubt that the main reason has been that the Governments and Central banks as
well as investors regard gold more as a monetary metal and silver predominantly an industrial
metal. The FOMC minutes as published on Wednesday
provided quite frankly a pretty non-descript interpretation of where interest rates were
headed, but on balance were regarded as more dovish that hawkish, thereby the value of
the dollar fell with the dollar index closing on Friday at 94.8 compared with a 52 week
low of 82 and a 52 week high of 100.3 The Dow Jones Industrial Average closed down
nearly 531 points on Friday – the last time the index closed more than 500 points lower
was on August 10th 2011. The NASDAQ composite also lost some 3.5% and the S&P 500 ended
at 1970 some 7.6% off its 52 week high. According to Tom Digenan, Head of US Equities at UBS
Global Asset Management he says: “Right now there is a feeling of fear in the marketplace
and all news is interpreted negatively and it’s interpreted indiscriminately.”
Our view at the moment is that these markets have fallen back into what is commonly phrased
“correction territory” and may have just a little further to go. We do not see at this
stage a 40% retracement as some are predicting. So where does this leave gold and silver?
Well the technical analysts predict that we may see gold hit resistance at around the
$1180 level while maintaining a floor at around $1100. Silver, they see resistance at $15.70
and short term support around the $15 level. For many, quite frankly, Silver’s performance
was disappointing, especially when there was a lot of short covering being undertaken,
which means, and suggests, as we originally forecast, that the silver market is much weaker
than many would have you believe. So with many traders still away for another
2 weeks and markets therefore subject to volatility because of limited trade, one can expect to
see daily 2-3% falls and rises in both gold and silver over the coming days. We therefore,
are not attaching too much importance to either, unless we see gold rise above $1250 and silver
above $16.50 then we are not concerned. Frankly, we do not see this happening and in fact would
not be surprised to see a slight fall in both commodities shortly.
The key is the dollar. With interest rates now only having a 40% chance of being raised
in September the market has to assess its reaction to this potential change of circumstance.
We are still not ruling out a 0.25 rise in September, especially if the dollar fails
to rise closer to 100 index mark as opposed to 90 by then.
Either way, we are sitting and observing and frankly, still, at this stage, not changing
our forecast for silver falling back through to the $14 level in the next couple of months.
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Silver Illuminati 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.