The gold market was able to sell off for the second consecutive trading session and finished at $7 an ounce at 1,326 in the December contract which is still very much appearing quite vulnerable to the shortcomings in a possible revision of its September 18th low of just 1,291. It would seem that the Federal Reserve might begin its tapering plans for December or at least that is the rumour circulating at this point which are putting much pressure on many commodities including the stock market in the recent weeks that transpired.
The day that the Federal Reserve was able to come out and made public that it will not taper sent gold prices which are $70 on massive short covering, however the fact that it will not have any follow through with regards to the upside of the existing market which at present is looking very bearish. Many are on the assumption that the lower prices at this point in time would curtail traders to just sit on the sidelines and wait for a much better chart construction to develop. A lot of speculations are heading towards the 1,300, and it is even very possible that it could be achieved in the succeeding days ahead. The trend therefore in terms of the Lower Chart Structure is greatly improving.
Silver futures closed at $.10 at 21.82 which rallied off a session of 21.30 essentially retesting the previous low last week and was looking rather frail notwithstanding the fact that the US dollar hit a devastating 8th month low. The commodities, however have not rallied over the concerns regarding tapering by the Federal Reserve for the last quarter. The prices are still heading towards a higher trend despite the fact that the tapering will come one certain day and recall stock and commodity prices for the past decades it was traded under the law of supply and demand and not what the government actually does on a day-to-day basis.
The short term silver prices could inevitably drop under the present $21 an ounce and could possibly happen anytime this week of the following week for that matter and it would seem that taking the advantage of the situation as the market across the board does not seem to be fairly performing well at all.
Traders welcome the faithful day that there will no longer be tapering and actions will just be focused on the technicalities and fundamentals in the commodity and stock markets instead of just solely relying on the government strutting up its asset prices simply because they’re going to pull out and there isn’t a single and straightforward result on what will happen because this was never been done before. Analysts are advising traders to purchase silver on sharp down days and take full advantage of the unexpected dips because prices are headed in the long term due to the continuing strong demand. The trend is indeed improving in terms of the lower-chart structure.