Month: January 2011

By CountingPips.com

The first “advance” estimate GDP report for the fourth quarter of 2010 showed that the US economy grew at a rate of 3.2 percent, according to today’s release by the U.S. Commerce Department.

The GDP number came in slightly below expectations as market forecasts were expecting the GDP to advance by 3.5 percent for the quarter.

The third quarter economic growth grew by a real 2.6 percent following a 1.7 percent growth rate in the second quarter and a 3.7 percent gain in the first quarter.

Overall for the 2010 calendar year, economic growth advanced by 2.9 percent after declining for the calendar year in 2009 by 2.6 percent.

On an annual basis, from the fourth quarter of 2009 to the fourth quarter of 2010, economic growth rose by 2.8 percent.

The second GDP estimate with more complete data will be released on February 25, 2010.

By GCI Forex Research

Fundamental Outlook at 0800 GMT (EDT + 0400)

USD

Activity in FX markets was fairly subdued given the lack of news flow. The yen used the opportunity to claw back some of yesterday’s downgrade-driven losses against the dollar. EURUSD traded 1.3696-1.3744, USDJPY 82.58-82.98. The Nikkei 225 is -1.1% lower at the time of writing. Earlier the S&P 500 breached the 1300 level for the first time since Sept. 2008, but closed just below. Headline durable goods unexpectedly dropped but the ex-transportation figure increased, albeit by less than anticipated. Jobless claims jumped due to inclement weather and the Martin Luther King Day holiday, which indicates the jump does not reflect a material weakening in the labor market. Q4 GDP and the University of Michigan confidence index are due. Treasury Secretary Geithner speaks on the economy at Davos.
EUR

The euro benefited from hawkish remarks by ECB Executive Board member Bini-Smaghi. He highlighted his concerns over the effects of imported inflation in the Eurozone, noting that second-round effects can only be avoided if domestic inflation is “significantly lower than 2%”.
Greek Prime Minister Papandreou said Greece would not need to restructure its debt, but acknowledged that extending the maturity of EU/IMF loans would be beneficial and would help to calm financial markets. ECB President Trichet said a strong economic union is needed to strengthen EU ties and to keep those nations that exceed deficit and debt limits accountable.
We maintain our EURUSD forecasts as our team does not envisage an ECB rate hike until Q4. We also believe that over-optimism on a solution to Eurozone sovereign worries could ultimately lead to disappointment when any changes to the EFSF are finally announced.

TECHNICAL OUTLOOK
EURGBP targets 0.8672/91.
EURUSD BULLISH Targets the upper boundary of the 1.3741/86 resistance zone; break through this would expose 1.3825. Support at 1.3637.
USDJPY BEARISH Rise through 82.67 and 83.13 has exposed 83.68. Near term support is at 81.85.
GBPUSD BULLISH The pair eyes initial resistance 1.6017 ahead of 1.6059. Support comes in at 1.5843.
USDCHF BEARISH Focus is on 0.9390 ahead of 0.9301 key low. Initial resistance is at 0.9523.
AUDUSD BEARISH Momentum has shifted downside towards 0.9833/0.9804 support zone. Near-term resistance is at 1.0022.
USDCAD NEUTRAL 1.0004 and 0.9889 mark the near term directional triggers.
EURCHF BULLISH Break of 1.3069 would expose 1.3118. Near term support is defined at 1.2827.
EURGBP BULLISH Remains bullish targeting 0.8672/91 resistance zone. Initial support lies at 0.8582.
EURJPY BULLISH Positive momentum; initial resistance is at 114.94, breach of this would expose 115.68 next. Initial support lies at 112.45.

Forex Daily Market Commentary provided by GCI Financial Ltd.

GCI Financial Ltd (”GCI”) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (”Forex”) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (”CFDs”) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.

DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

By Anton Eljwizat

Yesterday, Standard & Poor’s announced that their downgrading Japan’s credit ranking from AA- to AA, due to the sluggish economy that doesn’t seem to know how to address its sovereign debt of $11 trillion. This was the first time in nine years that S&P has cut Japan’s credit ranking.

The market, of course, had an immediate impact to this turn of events, and the Japanese yen instantly depreciated against all the major currencies, including a 100 pips fall against the U.S. dollar and the euro and the British pound. In the meantime since then, the yen has corrected come of its losses, but the Japanese currency is still trading at relatively low levels. It now seems that any further comment regarding the Japanese debts are likely to create similar responses in the market.

As for today, several significant economic releases are expected from around the globe. Here are the leading two:

• 10:30 GMT, Swiss KOF Economic Barometer
This is an index, which is designed to predict the direction of the economy over the next six months. The expectations are that the index result will be 2.09. However, if the end result will beat expectations, the CHF might strengthen as a result.

• 13:30 GMT, U.S. Advance Gross Domestic Product (GDP)
The GDP measures that change in the total value of all goods and services produced by the economy, and thus considered to be the primary gauge of the economy’s health. If the end result will reach projection to a 3.5% rise, the dollar might see a rising trend against its major currency rivals.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By Greg Holden

The events of this week have resulted in a rather sporadic and choppy trading environment.

Dismal GDP figures from Britain pushed harshly on sterling’s recent strength. Meanwhile, President Obama’s State of the Union address left many investors optimistic about broader tax overhauls and a possible reduction in corporate taxes, but speculators have already begun to anticipate Congressional gridlock instead of the cooperation necessary to undertake such measures.

Following today’s surprise jump in US unemployment claims, the greenback’s prices against the other major currencies appears uneasy. The EUR/USD was moving higher, breaching 1.3720 this morning, while the GBP/USD also rose towards 1.5980 before paring its recent gains and currently trading at 1.5955.

Rising consumer confidence has helped lift risk appetite, leading many traders away from the greenback and precious metals and back into higher yielding assets such as the EUR and CHF. But many have stated that the recent rise of these riskier currencies was too rapid and a technical correction could be developing before the week’s close.

Tomorrow’s Advance GDP publication from the United States (13:30 GMT) represents the only remaining figure to carry a significant impact on the major currencies this week.

The median estimate among the Market News International survey of economists is for a growth of 3.5%, but other forecasts range from 2.9% to 5.4%. Most investors are expecting a moderate level of growth in the US economy, in line with Obama’s overtures towards economic recovery in his State of the Union address this week.

It is possible that such a positive level of growth could signal another buy-in to American equities, pushing the USD higher in the short-run prior to the week’s end. This would also support the notion of a technical correction to the recent downturn in dollar values against most other currencies.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

Yesterday’s most significant economic news was clearly the S&P’s announcement that Japan’s credit ratings will be downgraded from AA- to AA. The Japanese yen saw sharp falls against all the major currencies in response. In addition, disappointing U.S. economic data have weakened the dollar against the euro and the British pound.

Economic News

USD – Dollar Weakens Following Disappointing Economic Data

The U.S. Dollar fell against most of its major currency rivals on Thursday’s trading session. The dollar fell about 60 pips vs. the euro, and the EUR/USD pair reached a daily high of 1.3757. The greenback also dropped about 60 pips vs. the British.

The dollar fell yesterday after a report showed that the number of Americans that filed for the first time for unemployment benefits rose by 51,000 to 454,000 in the week ended in January 22. The end results failed to reach expectations for 407,000 claims. In addition, the total value of new purchase order placed with manufacturers for durable goods unexpectedly fell in December by 2.5%, failing to reach projection for a 1.6% rise.

The dollar’s fall has been moderated due to some positive data. The number of Americans singing contracts to buy previously owned homes rose in December by 2.0%, following a revised 3.1% gain the prior month. Positive data from the American housing sector are vital for the economy, as this remain the most fragile sector in the industry. In addition, orders for U.S. Capital equipment increased in December for the second month in a row. Bookings for equipment like computers and communications gear climbed by 1.4 after a 3.1% gain in November.

As for today, the most significant news event from the U.S. economy looks to be the Advance Gross Domestic Product (GDP). The GDP measures the change in the value of all goods and services produced by the economy, and its release usually has a large impact on the market. Traders are also advised to follow the Consumer Sentiment report which will be released from the University of Michigan.

EUR – Euro Strengthens After ECB Warns Of Imported Inflation

The euro rose against most of the major currencies during yesterday’s trading session. The 17-nation currency gained about 60 pips vs. the U.S. dollar and about 30 pips against the British pound. The euro also saw a 120 pip gain vs. the Japanese yen.

The euro strengthened yesterday after two leading European Central Bank policymakers warned of a rising trend of imported inflation. The policymakers have issued the warning after inflation exceeded the ECB’s preferred level of just below 2% for first time in two years in December, hitting 2.2 %.

Lorenzi Bini Smaghi, one of the six ECB executive board members, said that a permanent and repeated increase in the prices of imported products will tend to impact on inflation in the advanced countries, including the euro area. Bini Smaghi added that the ECB should address the rising inflation; otherwise monetary policy has to become more restrictive than it should be which leads to slower growth.

Looking ahead to today, the most significant economic release from the euro-zone seems to be the M3 Money Supply report. This report measures the change in the total quantity of domestic currency in circulation and deposited in banks. A positive data has potential to further support the 17-nation currency against its major rivals.

JPY – Yen Tumbles as S&P Cuts Japan’s Credit Ratings

The Japanese yen fell against all its major currency counterparts yesterday. The yen fell about 90 pips vs. the U.S. dollar, and about 120 pips vs. the euro. The yen also dropped about 150 pips against the British pound, and the GBP/JPY cross reached as high as the 132.65 level.

The Japanese currency slid yesterday after Japan’s credit rating was downgraded for the first time in nine years by the Standard & Poor’s. Japan’s credit rating was lowered to AA- from AA. The credit rating was lowered due to persistent deflation and as political gridlock undermined efforts to reduce an $11 trillion debt burden. As a result, the yen instantly slid against all the major currencies.

As for today, no significant release is expected from the Japanese economy. Traders are advised to follow official comments from the Japanese leadership regarding the credit rating cut; any development on this issue is likely to have a large impact on the Japanese currency today.

Crude Oil – Crude Oil Falls To $85.10 a Barrel

Crude oil prices continued to plunge on Thursday’s trading session. Crude began yesterday’s trading session at $87.50 a barrel. The session began with a fall to $86.30 a barrel, which was promptly corrected. Yet by midday another sharp fall took place, and crude reached as low as $85.10 a barrel.

Crude dropped yesterday on concern that the pace of fuel demand recovery in the U.S. will falter. The U.S. is the world’s biggest crude-consuming nation, and a reduced demand for oil in the U.S. has a negative impact on crude prices. In addition, crude fell after Japan’s credit rating was cut by Standard & Poor’s, which stated that the Japanese government lacks a coherent strategy to reduce the nation’s debt.

Looking ahead to today, traders are advised to follow the leading economic releases from the U.S. and the euro-zone as these usually have a large impact on crude prices. Traders should also follow any developments regarding the Japanese credit cut, as this may also play a leading role in today’s trading.

Technical News

EUR/USD

There is a very distinct bullish channel formed on the 4-hour chart, as the pair is currently floating in the middle of it. In addition, as the MACD on the daily chart continues to point upwards, it seems that the pair might see another bullish session today. Going long with tight stops might be the right choice today.

GBP/USD

The cable has been range-trading over the past 12 days, staying between the 1.5750 and the 1.6000 levels. Currently, after the pair saw another failed attempt to cross the 1.6000 level, a bearish correction might be in place, with potential to reach as low as the 1.5800 level.

USD/JPY

The USDJPY pair saw a sharp 100 pips climb yesterday, reaching as high as the 83.20 level. Since then, the pair is gradually correcting losses, and is currently treading near the 82.70 level. As a bearish cross has just taken place on the 4-hour chart’s Slow Stochastic it looks that the bearish correction might proceed today. Going short with tight stops might be the right strategy today.

USD/CHF

The USD/CHF pair has been flat trading for the past three days, as the pair is constantly trading near the 0.9430 level. Nevertheless, as the daily chart’s RSI is cross the 30-line, it seems that a bullish move might be impending. Going long might be the preferable choice today.

The Wild Card

Gold

Ever since gold peaked at $1,422 an ounce about three weeks ago, it has steadily corrected its gains, and is currently trading near the $1,310 level. In addition, as both the MACD and the RSI on the daily chart are providing bearish indications, it seems that gold may drop further today. This might be a great opportunity for forex trader to join a very popular trend.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

USDCHF remains in downtrend from 0.9783, the bounce from 0.9390 is treated as minor consolidation of downtrend. Range trading between 0.9390 and 0.9550 would likely be seen in a couple of days. As long as 0.9550 resistance holds, downtrend could be expected to resume and one more fall towards 0.9300 previous low is still possible. Only break above 0.9550 could indicate that the fall from 0.9783 had completed at 0.9390 already, then the following upward move could bring price back to 0.9600-0.9700 area.

Forex Signals

Jan. 27 (Bloomberg) — Billionaire investor George Soros talks about the European sovereign debt crisis, the outlook for commodities and the U.S. deficit. He speaks with Erik Schatzker on Bloomberg Television’s “On The Move” from the World Economic Forum meeting in Davos, Switzerland.

Bob Prechter’s Conquer The Crash reveals whether the Fed really can rescue the US economy

By Elliott Wave International

Since its creation in 1913, the primary intended role of the U.S. Federal Reserve Bank has been that of protector. In theory, the central bank was bestowed with the power to shape monetary policy in a way that would keep both booms and busts in check. The two main tools at its disposal — interest rates and money creation — would provide a “ceiling of normalcy” above expansions AND a “net of safety” below contractions.

To this day, the financial mainstream holds great faith in the Fed’s ability to fulfill its save-the-day duties — as these recent news items make plain:

• “Why Raising Fed Funds Rate Is Positive For Equities.” (Seeking Alpha)
• “Fed’s Moves Lift All Asset Classes.” (Associated Press)
• “US Stocks Erasing Losses: The aggressive moves of the Fed have been an important driver for the stabilization of stock prices.” (Bloomberg)

But of all the variables the Fed creators took into account, there’s one glaring factor they neglected to consider: Namely, it cannot force consumers to spend, creditors to lend, or businesses to borrow. The events of 2007-2009 “credit crunch” and the subsequent “Great Recession” made that obvious. Remember how the government was upset at banks for sitting on the bailout funds instead of lending them out to consumers? And consumers weren’t exactly lining up on the street to get a loan, either.

The Fed’s inability to change social mood is the central theme in Chapter 13 of EWI President Bob Prechter’s NY Times business bestseller book Conquer the Crash. There, Bob describes the Fed’s strategy of lowering the federal funds rate to stimulate spending to be as effective as “pushing on a string.” Writes Bob:

“The primary basis for today’s belief in perpetual prosperity and inflation with an occasional recession is what I call the ‘Potent Directors Fallacy.’ It is nearly impossible to find a treatise on macroeconomics today that does not assert or assume that the Federal Reserve Board has learned to control both our money and our economy. Many believe that it also possesses the immense power to manipulate the stock market. The very idea that it can do these things is false.”

And so begins one of the most groundbreaking studies into the very real INABILITY of the Fed to fell the great bears of economic declines, or to feed the great bulls of economic vigor.

The best part is, you can read Chapter 13 of Conquer the Crash in its entirety FREE via a Club EWI resource “You Can Survive And Prosper In A Deflationary Depression.” The free report also includes SEVEN other chapters of Conquer the Crash that shed equal light on some of the most misleading notions of mainstream economic wisdom.

By CountingPips.com

Today, we are pleased to bring you our latest forex interview with forex trader and technical trading strategist Joel Kruger. Joel covers the European and Asian markets for DailyFx.com using a blend of fundamental and technical analysis and has over 10 years of experience in the forex markets as well as a background in law. Joel was also recently featured as a guest commentator on ForexTV.

Q: How did you become involved in the forex world? Was there something particularly attractive to you about the forex market?

A: After graduating from Law School, I accepted a position to work in investment banking. It was there that I had my first exposure to the trading floor and foreign exchange desk. The idea of working in a fast paced trading floor environment was something that was very exciting for me and I was particularly attracted to the FX market due to the overwhelming size and volumes traded on a daily basis. This was after all the biggest market in the world. I was also very attracted to the macro aspect of FX and the exposure that would be gained to markets and economies all over the world.

Q: How did you get your “forex” education? Did you learn by demo trading, did you have a mentor? etc.

A: Interestingly enough, while my background was completely fundamental when I entered the foreign exchange markets, I quickly gained fascination with technical analysis and began to learn and read as much as possible on the topic. I was indeed very fortunate to have a wonderful mentor who was young, exciting and brilliant, and also instrumental in helping to accelerate my career. I am a big believer in learning through actual experience so most of my learning was through reading real-time market reports and financial newspapers rather than academic materials. I also took on some trading so that I could better understand and feel the market.

Q: How often do you trade, are you a full-time trader? Do you trade longer or shorter times?

A: At present, while I do trade, I spend most of my time focused on strategy and producing the best possible trading opportunities for our clients. I am very serious about the trades that I recommend to clients and am very committed to providing real trading opportunities with clearly defined risk parameters. I also believe in transparency and even though I work as a strategist, I make it a point to publish my trading results to our clients on a daily basis so that they can track performance and gain confidence in my methodologies. As far as time frames are concerned, I would definitely classify my strategy as shorter-term. I look to take a trade every day.

Q: Do you have any preference on the currency pairs you trade?

A: Ultimately, I have no preference over which currencies I trade and will simply look for setups that are attractive. However, I do look at everything and am a big fan of trading the non-major currencies. More often than not, a setup in a major currency might not play out as well because so many market participants see the setup and inevitably this also brings too much attention to the setup which prevents it from playing out exactly the way it should. However, when trading through the minor currencies, crosses, or exotics, a setup will not get as much attention and therefore (in my opinion) have a greater chance of playing out the way it should.

Q: Do you use more technical analysis or fundamental analysis, both? Do you take sentiment analysis into your decision making?

A: I like to think of myself as a techno-fundamental analyst. I believe that technical analysis is the blueprint for the market and is the purest form of fundamental analysis. What I mean by this is that everything is discounted into the price and therefore any opinions or sentiments will be reflected in the charts. The charts should then provide an objective and clear indication of precisely which fundamental opinion is more relevant at a given time. As far as my methodology is concerned, I will look for trade setups purely on a technical basis and then help to better understand my technical view by assigning a fundamental reasoning or potential fundamental catalyst for the trade. A successful trader will often define his/her success by trading away from the herd and formulating his/her own opinions and strategies. As such, my strategies and methodologies are based on and gauged on just how far away I am from market sentiment. More often than not, the further away I am from where the sentiment is, the more successful my results.

Q: Do you have any favorite economic indicators or favorite technical indicators that you feel are most reliable?

A: I consider myself to be a classical technical analyst and my favorite indicators are some of the more simple and obvious ones. For my methodology, my favorite indicators are the Relative Strength Index (RSI) and Average True Range (ATR). Both are quite different and extremely helpful for my trading and strategy. I am a contrarian which means I will always be looking to fade overdone moves. If a market is rallying, then I will be looking to sell and if a market is dropping I will be looking to buy. As such, the RSI becomes very useful as the indicator lets you know when a market is overbought or oversold. ATR is probably my favorite indicator as it lets you know what the average range of a given currency pair (security) for the time frame you are analyzing. If you are looking at a daily chart, the ATR will then tell you the average range a day for that market. This is an amazing tool to have in your bag as it will often let you project where the market might stall out to the topside or downside on a given day.

Q: In conclusion, do you have any advice to anyone starting out in forex trading? Is there anything in particular that you wish you had learned when you started out?

A: I think the most important thing is to remember that trading isn’t about getting rich quick. If you are serious about trading then you need to understand that it is a process just like anything else. My recommendation to someone starting out would therefore be to take just 1 year and trade on no leverage. This means that you should not focus on dollars and cents but rather on percentage returns. If you can take a $1,000 account and turn it into $1100 (ie looking to make a few dollars per trade throughout the year) at the end of the year through steady trading, then you will be a huge success and give yourself all of the confidence to make a more serious commitment in your second year of trading. In order to be successful you need to have a clear head. It is so important that when you trade you are able to put your head down on the pillow every night and sleep without worrying about any given position. If you find yourself unable to sleep, then you are too leveraged and will most probably not be successful over time. In the end, take it slow and make sure you can sleep at night.

Thank you Joel for taking the time to share your views and experiences in our latest forex interview. To read Joel’s latest currency analysis and trading strategies please visit DailyFx.com.

By Sara Nunnally, Editor, Smart Investing Daily, taipanpublishinggroup.com

A couple of weeks ago, I gave you some key support points for the price of gold. I said that we’d see some pretty big swings between the $1,350 and $1,400 level. Indeed, gold prices have seesawed drastically.

View larger chart

I also said that if the price of gold fell below $1,350 that the next major support point would be at $1,250.

Of course, we’ll see some minor support here and there, like $1,330 on the chart above. That’s where gold futures bottomed out in November 2010.

Will the price of gold fall all the way to $1,250?

The honest answer is I don’t know. Here’s what’s happening now, though. January futures are set to expire on Thursday this week. At the same time, the value of the U.S. dollar has climbed. The U.S. dollar index jumped on Friday, and the euro fell against the dollar.

Those two things may have put a lot of downward pressure on the price of gold, forcing it through its previous support point.

Additionally, with the stock market continuing to rally in January, the price correction we called across the board for commodities still continues. Institutional investors took gains and are now looking to riskier assets.

That said, the appetite for gold may now be moving overseas, and that could increase demand, particularly as gold looks “cheap” compared to the end of 2011.

Interest in gold ETFs is picking up in places like China and India; some predict a boost of 40% in investment this year.

Kitco.com says gold could find support between $1,325 and $1,275, which means we could have some more downside, despite the long-term bullish outlook for gold demand.

I agree with this position, particularly if we get some good economic news this week. We’ve got American Express (AXP:NYSE) and McDonald’s (MCD:NYSE) reporting today, housing data and the State of the Union address tomorrow, FOMC decision on interest rates on Wednesday, Microsoft (MSFT:NASDAQ) earnings on Thursday, and the GDP report on Friday.

A big week to say the least.

Gold started edging higher in Asian trading late Sunday, most likely due to the steep drop in prices since the beginning of the year.

In fact, the SPDR Gold Shares ETF (GLD:NYSE) increased its holdings by 1.6%, its first rise in two weeks.

Gold mining companies will appreciate this news as the downward pressure in gold prices has also negatively affected their share prices. Take a look at Goldcorp (GG:NYSE), one of my favorite gold mining companies because of low production costs and timely acquisitions.

View larger chart

(Investing doesn’t have to be complicated. Sign up for Smart Investing Daily and let me and my fellow editor Jared Levy simplify the stock market for you with our easy-to-understand investment articles.)

It appears that the downward pressure has even forced GG out of its yearlong uptrend. GG could fall as far as $36 a share, and possibly as low as $34, should weakness in gold prices continue past this week.

At that point, though, I would consider both gold and GG oversold.

Money has been flowing out of GG like rats off a burning ship. The last time money flow was this low was back in February 2010… and GG rallied from $33.22 to $46.22 by mid-May.

At the same time, though, gold prices climbed from around $1,070 to nearly $1,250.

I don’t think we’ll see another 25% jump in gold prices over the next five months, but I expect weakness to end soon, and traditional first-quarter demand to help boost prices higher.

We’re going to keep an eye on both gold and GG this week, and I’ll come back to both of these charts in Thursday’s Smart Investing Daily article.

*Editor’s Note: In Saturday’s Smart Investing Daily weekly review, I noted that iPath Dow Jones UBS Grains ETN (JJG:NYSE) and the PowerShares DB Agriculture ETF (DBA:NYSE), the two agricultural funds we’ve been discussing, appeared to be moving higher, and that I was going to enter them both into our model portfolio to follow using today’s opening prices. Those are $54.99 and $33.62 respectively.

If you missed my interview with Marc Pearlman on Your Money Matters Radio show you can listen to it right here. In it, I discuss my new book, Barbarians of Wealth and how you can protect yourself against today’s greedy, self-serving barbarians in Washington and on Wall Street.

P.S. Gold went up 76%… but this made 975%… In every gold bull market of the past century, this investment class has outperformed physical gold. Over the past two years, one member of this class made 12 times more than physical gold. Learn all about this gold investment.

About the Author

Sara is Co-Editor of Smart Investing Daily. As Senior Research Director and global correspondent, Sara Nunnally’s diverse resume includes studies in art history, computer science and financial research. She has appeared on news media such as Forbes on Fox, Fox News Live, and CNBC’s Squawk Box, as well as numerous radio shows around the country.

As Senior Research Director, global correspondent and co-editor of Smart Investing Daily, Sara has traveled all over the world in search of the best investment opportunities to recommend to her readers, be they in developed economies like France and Italy, in emerging markets like the Czech Republic and Poland, or in frontier terrain like Vietnam and Morocco. Her unique “holistic” approach of boots-on-the-ground research has given her an edge in today’s financial marketplace as she searches for the next investment opportunities in hot sectors like alternative energy, currency markets and commodities.