GBP Plunges to 31 year lows.Gold, Silver Hold above Friday close

Overnight:  Commodities and stocks were lower with the GBP leading the way to 31 year lows. Gold and Silver gave back some gains from their Monday electronic session but remain above Friday's close. Expect increased volatility in the PM sector as it wrestles with its newly recognized currency status.-by Soren K.

Headlines

  • GBP TUMBLES TO 31 YEAR LOW- RTRS
  • SILVER NOT REALLY A PRECIOUS METAL- BBERG INTERVIEWER TO RIC SPOONER- she's not really an analyst
  • GOLD CAN REACH $1470-1500 BY YEAR END- RIC SPOONER CMC MKTS CHIEF ANALYST- to alleged bberg interviewer
  • BOE CUTS CAPITAL BUFFERS FOR BANKS- because the plunging pound means less risk?
  • BARCLAYS EMPLOYEES GUILTY OF LIBOR RIGGING- BBerg Barclay's ceo innocent.  We ranted on this HERE

Silver Volatility Spikes- remain calm

chart courtesy of Bloomberg

Gold-GCQ (1344.90 friday) TRP 1294.70

  • a close over 1355 today is bullish and indicates a drive t o1380,
  • dips should flag above 1310
  • a close under the TRP negates the run

Spot Gold

Silver- SIU (1985.5 friday) TRP 1891

  • The run to 2100 on Monday was sufficient for now.
  • Expect healthy pullbacks above 1925
  • only a close under TRP reverses the trend
  • Traders- Widen stops and lighten volume.
  • Investors should not care. Volatility is not risk if your unleveraged in physical.

Silver: prepare for Volatility

 

Pound Sterling-GBP (132.83) TRP 138.49

  • we are looking at monthly charts on this one. 
  • little between 130.50 and 125 in the way of support
  • TRP is a long way above so expect whippy counter trend rallies

GBP- Convergence with the Euro is your Fate

 

Other Reading

What's Next For Silver- Kitco News

Silver not Really Precious- BBerg- watch as Spooner bites his tongue during first 20 seconds

Pound in Slump despite BOE announcement- PSL.com- Less capital for banks on reserve is more bullish for gbp?

 

Good Luck

 

- Soren K.

SorenK@marketslant.com

 

Read more by Soren K.Group