Looks like the US and Europe as well as the Arab league are pushing for a bit of argy bargy in Syria, could this be the source of the recent silver price spike. As talk of an invasion firms up so does the price of silver.
Silver trades on a technical basis as the price is set in the futures market with positions and targets influencing future positions and targets. Mainstream thinking is that all price moments are government by current affairs and news. Reality is majority of price action is government by technical trading and general sentiment. The only time you really see news effecting price is when the Fed is talking QE which in effect is really a change on the value of Fiat not the markets and hence why almost all markets move up together. I doubt the price spike had much to with anything else than Gold breaking a large Resistance barrier at US$1340 partly to do with the depth of Backwardation on the Futures market.
mmm I have often wondered how much TA and news are related... at times i'm am so sure TA has predicted news... this may just be propaganda in action :| . Fantastic post BTW
Don't really need charts, it's not the QE that directly effects it it's the media release from the Fed, you will usually see all markets up on the day of the release, usually on the minute of the release (night time in Australia) you will see a spike. Dow up, Commodities up, Bond yields up, just about everything denominated in dollars are then going up to counter the expected loss in the value of the currency as more fiat is about to enter circulation (well theoretical circulation) You know the odd spike up that has little to do with TA it's called the "Bernanke opened his mouth spike" almost all the other moves in commodities are not moves motivated by news events. With all markets any predictable news these days is factored into prices 4-6 moths prior to the official release of the news and is hence why you often see a contrarian move on the day of the news (i.e. good news sends a market down and bad news sends it up) usually hype overshoots the mark prior to official release of the news then the official release brings it back to reality. Buy the roomer Sell the fact.
Absolutely. And considering Syria's allies in Russia and China.. the sit could really it the fan. This world has gone mad.
Let's keep in mind that the same powers controlling the Syria situation are controlling silver prices, amongst other things. Whether the two are tied or not, it doesn't really matter. Both are controlled. At this point, TPTB are caring less about the subtleties as things become more obvious to the general public. Believe it or say "baaaah"
Yes, silver will spike along with other precious metals and oil when the US starts bombing Syria. I think that $30 is very attainable within the next 3 months, but once it tops out after the war has started, take your profits because the stock markets will build a tolerance to the war and rebound and metals will sink.
