MARKET:People/Power/Pressure

GOLD has broken its major sup of $1500/1522 area, made a low of $1476 in GLOBEX late electronic trading and silver too broken its major sup of $26/26.3 area and made a low of $25.725 in late electronic trading. Chart got damaged and technical picture turns negative.

A negative spiral can expect for midterm.  Next sup level is coming at $1436 (Comex gold futures generic and spot gold), which is Fib 38% retracement level from 2008 low to 2012 high and even MA 200 week, another sup is @ $1418/22. So this sup area we can watch whereas strong res $1530 and 1550.
next imp sup area is coming $1288-$1302.

But won’t be surprise if we see a bear trap to form nearby.

Friday, 12^th April ’13 gold pressured by Mr. Draghi comment reg Cyprus gold reserve sale whereas EU finance ministers extend Irish, Portuguese loan repayments 7 more years, easing the burden on their economy and approves Cyprus bailout. on Wednesday there was market talk of Cyprus gold sell but on Thursday Cyprus finance minister ignored any discussion reg this.

This was a panic selling as it did so many times in recent past, this time fear is, if the pressure comes on  other indebted EU countries which may on Cyprus and all come to sale their gold reserve. Gold and silver too slips by hitting huge sell stops.

We all can remember some Famous names suggesting to sell gold as b’coz its useless (in their opinion) and to buy stocks its to move new area, somehow they able to make themselves right supported by less participants and volume irrespective the reason on the ground as its still gloomy for US, very poor for EU, China with much doubt, India is also not well including some other countries.

On this day although all other indices globally was down but US indices covered their day loss and closed near to flat (irrespective of US retail sales and  consumer sentiment  was disappointed) , may pressure to liquidate commodities position to meet up their margin.

US Fed divided for continuing or end QE program and when. Whenever comment is coming off an end sooner than later, pressure is coming on precious, but is it not due to QE, equity was gained much irrespective of econ condition?

In last speech Fed Mr. Bernanke didn’t hint an end sooner.

 What about the other countries? Its ongoing and in Japan its unlimited now.

* Soaring inventory or base metal indicates less demand which mainly for industrial use.

*China importing huge quantity of gold recently it was 72 Mt, and from nov’12 to feb’13 it is 272tons in just four months (data source Kitco).
*Globally most of the central banks increasing their holding to protect their currency and all in a currency war.

GOLD is really precious as because of its nature and human psychology and culture, its always against any type of risk as inflation or deflation, economical or geopolitical even against fiat currency with has industrial demand too. Silver too categorically same in nature with wide industrial use.