Prices and Charts
Gold Bouncing Back Strongly This Week
NZD gold bounced back strongly off the previous high from 2011. It’s now once again not far from the all time NZ dollar high at $2450. Gold looks set to challenge that level again before long. If it doesn’t succeed it’s not too far down to the 50 day moving average.
But it’s anyone’s guess as to whether this is a brief consolidation like we saw around $2100, before a move higher. Or if we’ll need to see a longer consolidation and move back down to at least the 50 day MA.
Silver Up Even More
Silver bounced back even more sharply this week. After testing the $28 area it now looks to be ready to again challenge the $31 mark.
Like gold though, who knows? We may yet still see a return back to the 50 day MA too.
As we’ve been pointing out, this is why layering or averaging in (also known as dollar cost averaging) is the way to go.
In a bull market picking the bottom of these corrections is notoriously difficult to do. You may get lucky. But you’ll just as likely end up sitting on the sidelines.
NZ Dollar Remains Weak
The NZ dollar has remained surprisingly weak. It dipped down to test the 2011 low just above 0.6200.
We have the RBNZ interest rate decision out tomorrow. It’s expected that they will hold as is on this one. But who knows with this new and interventionist sounding central bank?
So maybe they hold and the dollar bounces a bit?
[NOTE: See our late note at the end of this email, as the OCR decision was today – got our dates wrong sorry! Dollar reacted to no rate rise as expected with a a quick jump higher.]
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Check out this post if any of the terms we use when discussing the gold, silver and NZ Dollar charts are unknown to you:
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Federal Reserve Balance Sheet Reduction: Is it Now Growing Again?
The current currency war still has the US Dollar winning. It has held up and remains stronger. But the latest Federal Reserve announcement points to them once again joining the “race to debase”.
There is plenty of debate surrounding negative interest rates and a new round of QE in the USA currently.
In this article we ponder whether this has already started?
The US central bank not only seems to have finished their balance sheet reduction. But the latest numbers actually show a reversal. Why is this? Read on to see what it could be…
Your Questions Wanted
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Late Update: OCR on Hold
Late update: Just as we are about to hit send we realised the RBNZ announcement has just been. It wasn’t tomorrow as we first thought! Sorry about that. The result was much along the lines of what we’d written earlier. The NZ dollar has bounced as the central bank left the official cash rate unchanged at 1%.
So prices are a bit cheaper for gold and silver compared to what we had written above.
Odds are lower interests are coming though. Maybe as soon as the next announcement. That will likely send the NZ dollar lower. So a good chance to grab a position in gold or silver today.
Give us a call. Or book a time online that suits you for a free bullion consultation.
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