With the metal markets having difficulty in breaking out from the current downtrend and suffering a few false starts during the last two weeks, now seems a good time to try to analyze recent price moves in the hope that some directional clues will emerge.
There is no doubt in our mind that the technical indications have been pointing to a gold pullback with a fall to around $750 an ounce being a favorite.
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When we write an article it is our aim to provide both an insight to the latest precious metal news and developments and to draw some conclusions as to the future behavior of gold, silver and platinum group metals.
Usually we publish on Monday after we have had time to reflect on the previous weeks events and have had a quick look at any price action starting the week from the Far East, London and other European exchanges before the New York open.
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The production of commercial quantities of Titanium is an expensive and complicated process and has only been possible for the last sixty odd years.
Nevertheless, in what is a relatively short space of time, many highly sophisticated and technical advances have been made in aviation, marine, medicine, electronics, space travel, paints and decorative materials and numerous other fields due to the unique properties of Titanium, Titanium alloys, Titanium compounds and Titanium coated metals.
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Hardly a week goes by without reading about yet another new application for Titanium, Titanium alloys or Titanium Oxide.
Just to remind our readers that titanium is corrosion resistant, as strong as steel and nearly half the weight and is not rejected by the human body.
These properties have caused the price of the metal to more than double since 2005 as demand has increased in the industrial, chemical, medical, energy, and electronic sectors. It is also becoming increasingly popular in the jewelry trade.
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Precious metal market analysts were caught up in a conflict of opinions in the last week over the next moves in platinum group metals, silver and gold prices.
Looking at gold, the catalyst for the sector, we read of projections of a gold price over $2000 an ounce by the end of the year at one end of the scale down to $650´ish at the other.
The problem is, of course, deciding whether it is the bull camp or the bear camp that provides the most convincing arguments.
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Turning to uranium, things are not looking too good in the short term according to the technicians.
Fibbonacci, MAs etc are all indicating weakness and fundamentally there is nothing much going on to contradict this outlook.
Sooner or later we think that the world is going to wake up to the fact that nuclear is the only viable energy replacement for the fossil fuels that continue to pollute the planet and, with the exception of coal, are a rapidly depleting resource.
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Gold continues its see sawing between $900-950 an ounce in Far Eastern and European trading this Monday. The principle drivers are a stronger dollar (the market never ceases to surprise!), weaker oil prices, and quarter end book balancing and profit taking when gold challenges $950.
May be the demand from the approaching Indian wedding season when it is traditional to give gold to the newly weds will bring some stability to the price.
Some readers of the runes, otherwise known as chartists/technical analysts see a retracement to around $850 an oz., others see support at the $900 level before the longer term bull run gets back into its stride.
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This week we intend to be very careful not to give any buy or sell bias on the short-term outlook for gold and other precious metals.
The fact is that more and more uncertainty is gathering throughout the world and until a semblance of normality returns the price action in our favorite metals and their producers is anybodies guess.
Take the US dollar for example, the Fed intends to bail out lenders in trouble, or at least the politically important ones, and the only way it can do that is to print more money.
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Please first read the interesting comment sent to us by EK.
His email certainly raises some interesting and debatable points.
Dealing in the first instance with the (hypothetical?) situation he mentions concerning oil supplies and political deals cut with the OPEC cartel and the link with gold.
My first reaction was that this was yet another conspiracy theory raising its head and I have to say that on balance I remain unconvinced.
Even if a deal was struck those years ago, that it should remain in place to this day without breaking down or becoming public knowledge seems unlikely for at least two reasons.
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