warning

The largest source of exported physical goods is China. Demand from other countries for China’s goods is declining, confirmed by the Baltic Dry Index* which is plumbing new lows. This slow-down in economic activity could easily burst the bubble of bank credit, which is in danger of collapsing under the massive burden of bad debts.
The signals are clear: the world has already entered a downturn in economic activity.
Therefore we can expect accelerated money-printing and the imposition of more negative interest rates in a forlorn attempt to avert economic reality.

Both gold and silver are now below their 50 MA as well as their 9 EMA; short and medium term bearish.
Gold needs a close above that 9 EMA as a first step to ending the downtrend.  If gold drops below $1166 (the previous low) it would be quite bearish- that would mark the end of the bullish 4-month “higher lows higher highs” pattern, and that would mark the end of the current medium-term uptrend.

In this excellent interview with Finance & Liberty’s Elijah Johnson, Silver Guru David Morgan provides an updated outlook on gold and silver, & discusses how the global currency war will impact gold and silver.
David Morgan’s full interview is below: 

Jim Sinclair

With respect to the Greek economy, the ECB decided to increase the ELA to 68 billion euros or an additional 3 billion will be granted to the banks due to the huge amount of bank runs in Greece this past week.
However  sovereign Greece announced that it has only one week’s worth of cash left which would put her out of money on Feb 24, 2015. Headaches mount for our big underwriting banks who bet huge amounts of money on Greece’s survival.
A Grexit will cause massive losses for the ECB bank and other official EU centres and the IMF.  A lot of these losses must be transferred to other members of the EMU.  Countries like Italy, Spain and France will not be available to absorb those losses.

Parabolic_Rise_in_2015
Play

PM Fund Manager Dave Kranzler joins the show as a Guest Host this week discussing:

  • Fund manager Dave Kranzler sees physical demand pushing silver higher; Silver has carved out a cyclical bottom formation and appears to in a solid uptrend  
  • Pullback from Jan 21st peak is blessing in disguise as silver starting to go parabolic
  • Consumer sentiment starting to turn down even as S&P 500 hits new all time high
  • Kranzler explains why Silver Will Be the Best Performing Asset of 2015!
  • Ukraine conflict will not end until U.S. changes policy
  • Greece and EU will likely come to some sort of agreement given “follow the money” (and resulting pain) analysis

    The SD Weekly Metals & Markets With Eric Dubin & Dave Kranzler is Below:

This week gold continued lower, breaking below its 50 MA, then tried to rally back and failed.  Silver chopped sideways until Friday, when it broke out sharply, rising above its downtrend line.
Gold is looking weak, while silver looks strong.

images

This week precious metals continued to consolidate January’s gains in volatile financial markets, with both gold and silver range-bound. Platinum and palladium were up on the week, noticeably stronger than gold and silver.
Physical and paper markets appear to have been behaving differently, with prices tending to be firm in London (where physical deliveries take place) and weaker in New York (which is overwhelmingly derivative trading), though at the close of trading in New York prices appeared more often than not to steady ahead of the Asian markets opening.

The US equity market is on the cusp of something interesting; if it confirms the swing high Monday, we might have some excitement next week.  I think a drop in SPX would be help PM, and bonds too.
I hate to sound like a broken record, but right now, gold price movement has a great deal to do with Greece and debtGold in Euros still looks quite good.
Check out this chart:

fugget about it

Price goes up when the cartel wants it to and down when they want, as well.  Metal price is a puppet on strings consisting of shorts and longs from both above and below.  If one can learn to read the numbers , then price direction is somewhat easy to predict.
Some writers partial to Speculators were hoping for a great long rally to crush the Commercial’s vast short positions.
Ain’t going to happen.  “Fugget about it!

HarveyOrgan

The big story today is the fact that we are back to square one with the Greek situation as Germany considers the Greek proposals on debt reduction, “half baked”.  Three of the 4 major Greek banks again went to the well for another 2 billion euros as depositors remove their money from Greek banks and place the said money in their mattresses.
Let’s head immediately to see the major data points for today:

freefall

We had quite a day Friday.  Gold shot up along with silver. Greek 3 year bond yields rise to 19% signifying default is in the wind.
The Mexican Peso and the Brazilian real collapsed.  The European CPI plummets to negative.6% and thus deflation intensifies.
The Brazilian economy collapses with its twin deficits ie. a fiscal deficit along with a current account deficit. 
German bund 30 yrs out falls in yield to below 1%.  Stock markets around the globe plummet. 
All in all, you must say that this was a day to remember.

moon

Gold and silver prices consolidated recent gains this week, both having become overbought short-term, and they now appear to be building a base before an attempt to convincingly attack higher ground, though Thursday’s price reaction was quite sharp.