Gold and Silver update week of Feb 5th

Technical analysts are suggesting that should gold prices fall below $1,329 then they may trend down toward $1,306 and if they fall below that we may very well see gold around $1250. Alternatively they suggest that should gold breach $1349 then it will meet the next resistance point at $1354 and any upward move from there will suggest an upward trend which could indeed surpass $1400. Silver generally has moved more or less in line with gold with the economic data on Friday significantly affecting its price. Silver has once again declined relative to gold providing a GSR just above 80. We all know that in comparison with one another, above 80 tends to suggest a revaluation in silver’s favour in the near future. That said, should stock markets rise while the US dollar strengthens this week, both of which are likely, then we see further downward pressure on both gold and silver prices. However, should investors panic and pull out more funds from the equity markets then of course both gold and silver will be beneficiaries of such a move. We believe that 2018 will be a turning point for gold and silver prices, especially later in the year. Meanwhile, we have to try and ascertain as to whether now is the time to buy or should we wait a little longer. Our position has been constant. If you are underweight in your physical gold and silver portfolio then buy regularly, especially during price falls but don’t go ‘all in at once’. For the past 3 years we have said, there is not going to be an explosion in gold and silver prices for a number of years and so far we have been right. Volatility absolutely, but no serious significant move, and there have been a number of economic and political factors which could have influenced prices considerably during these times. We still believe there is time for accumulation without rashness but we also see much turmoil later in the year and as the decade ends. We shall cover more of this in our annual forecast which is coming out this week