Commodities: sell gold and silver

We have had a look at some important commodities and we found something interesting. In step with the increasing optimism for the world economy, many investors appear to be pulling their money out of the assumed safe havens of gold and silver. Gold and silver have triggered sell signals and a further fall is indicated. The American crude light oil price is at a critical level and may soon trigger a sell signal.

Gold (GC)

Gold has had a fantastic price development in step with the growing uncertainty following the global financial crisis. In the past two years, the gold price moved sideways. In the middle of April, the price broke down. A strong sell signal was triggered from a big rectangle formation. This indicates that the gold price will enter a falling trend. A further fall is indicated for the gold price.

Silver (SI)

Silver has had a price development similar to that of gold. Following a fivefold increase from the autumn of 2008 to the spring of 2011, investors have become more and more negative to silver. The price is now in a long term falling trend channel and has broken down through the earlier support at 27 dollars per ounce. The volume development indicates aggressive sellers forcing the price down. A further fall is indicated.

American crude oil light sweet (CL)

The price for American crude oil has risen by over 10 per cent in the past three weeks. The price is approaching resistance at just below 100 dollars. The price has turned down three times in the past year and many investors may want to secure their gains. This can give a reaction down in the short term. However, in the long term the oil price is in a weak rising trend and further rise is indicated. A potential break over 98.50 dollars will trigger a buy signal from a rectangle formation.