• Stock Market and the Dollar Sustain the Bullish Environment for Gold and Silver
  This week marked the Year of the Dragon in the Chinese calendar, and according to Chinese mythology, Dragon years bring powerful changes and optimism representing imperial power, prosperity and good luck. This year is supposed to be even more auspicious since it’s a Water Dragon year, something that occurs once every 60 years. We admit that we don’t yet use the Chinese Horoscope as a technical indicator, and who knows, perhaps we should. One thing is certain—the Year of the Dragon began with an auspicious move for precious metals. 
• Market Trading Technical Indicators Love Hate Relationship
  Trading using technical indicators — such as the MACD, for example — can do one of two things: help you or hurt you.
  Elliott Wave International’s Jeffrey Kennedy explains what he loves and hates about technical indicators and shows you how he uses them to his advantage in this excerpt from his FREE eBook, The Commodity Trader’s Classroom.
• With Friends Like These Does Gold Need an Official QE3?
  Although the trading week started quietly for precious metals, gold and silver surged after the Federal Reserve’s latest Federal Open Market Committee meeting. On Wednesday, the Fed announced it will not increase its benchmark interest rate until at least late 2014, citing that record-low interest rates are still needed to help boost the sluggish economy. Furthermore, Fed Chairman Ben Bernanke explained that quantitative easing is “an option that certainly is on the table.”
• Stocks Thump Yields as Economic Growth Looks On
  It is not a new development for US GDP growth to be largely driven by a build- up inventories (+1.9% contribution is highest since Q1 2010) in contrast to weak contribution from real final sales (+0.80% is lowest since Q1 2011). If this is a signal to future growth prospects, then how will the ultra low yields-driven stock go on?
• Great Green Opportunities from Dangerous Q.E.
  “Prior to the 2008 financial crisis, the eight central bank balance sheets were less than 15% the size of world stock markets and falling. In the immediate aftermath of Lehman Brothers’ failure, these eight central bank balances swelled to 37% the capitalization of the world stock market. But keep in mind that the late 2008/early 2009 peak was due to collapsing stock market values combines with balance sheet expansion via ‘lender of last resort’ loans.
   
  “Recently, the eight central banks balance sheets have spiked to 33% of world stock market capitalization. This has come about not by lender of last resort loans, but rather by QE expansion…
   
  “Central banks are ruling markets to a degree this generation has not seen. Collectively they are printing money to a degree never seen in human history.”
   
  Bianco Research 01/25/2012
• U.S. Economy GDP on Recession Track
  The headline real GDP number of 2.8% does not sound too bad until you dig beneath the surface. A full 1.9 percentages points of that 2.8% was inventory replenishment. Real GDP vs. a year ago is +1.6% and that is on a recession track as well.
• Gold GLD ETF Investors Mass Exodus
  Gold is enjoying an awesome January, rallying strongly out of its oversold late-December lows.  But last month’s hyper-pessimistic sentiment deserves some reflection before it totally fades from memory.  One of the core theses of the bears resolutely predicting sub-$1400 gold prices soon was the notion that there would be widespread liquidations in the flagship GLD gold ETF, a mass exodus of capital.
• Is the United States in a Liquidity Trap?
  If nothing else, we’ve learned that the liquidity trap is neither a figment of our imaginations nor something that only happens in Japan; it’s a very real threat, and if and when it ends we should nonetheless be guarding against its return — which means that there’s a very strong case both for a higher inflation target, and for aggressive policy when unemployment is high at low inflation.
• Gold Has Foundation to Build Next Move Higher Following FOMC Catalyst
  WHOLESALE MARKET gold prices were headed for their biggest one-week rise since the start of December Friday lunchtime in London, climbing back through $1720 an ounce – a weekly gain of over 3%.
  Silver prices meantime hovered around $33.60 per ounce – 4.2% up on last week’s close – while other stocks and commodities were broadly flat and US Treasury bond prices slipped.

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