Gold and Silver Support Holding

July 1, 2009

          Gold has so far held support above $925 and silver above $13.60. As long as these levels continue to hold, I think we will see a small rally in July. For the past two weeks, Gold has been trading in a fairly tight range from $925 to $945 and silver between $13.60 and $14.40. Soon we will get a breakout, either up or down from this range, which will establish a new rally or continued correction.

          The precious metals might get some help from dollar selling, as the USD index closed at a two week low. On the other hand, some selling in oil could put pressure on commodities, including gold and silver. Trading volume has been pretty light this week, as the US markets are closed Friday in observance of 4th of July. As a short term trade, I purchased some silver today and may buy more Thursday morning, in anticipation of a rally. I will exit the trade if the support levels fail. I still believe we will see a better, low risk buying opportunity in the August to October timeframe, so I would not recommend that most investors try to trade right now. Sitting on cash and waiting for the next buying opportunity is a better option.

Best wishes on your future and investing and God Bless,

Timothy Silvers

 

Disclaimer: This article represents the opinions and personal views of Timothy Silvers and is not intended to be investment advice. If you choose to use this analysis for your personal trading, Timothy Silvers assumes no liability for the direct or indirect losses you may incur due to using this article to make your investment decisions. You are totally and completely responsible for your own investments. At any given time, Timothy Silvers or his friends and relatives may have positions in silver related investments that may or may not follow the recommendations contained in this article. The information in this article may not be completely correct and accurate. Even though Timothy Silvers has done his best to review the content and accuracy of this article, he is in no way liable or responsible for any mistakes or omissions.