Weekly Gold Report (January 28th through Feb 1st)
If anyone is trading any markets outside of Gold, you may be interested in knowing that this week is packed full of important reports in the United States, including a continuation of earnings reports, GDP, Payrolls, ISM, and even an FOMC announcement. There will also be Consumer Confidence Reports in the US and in Europe in this week’s reports, but if this week is anything like the last, the reports will pale in comparison to the importance of the technical analysis seen in the chart below.
After a ten trading day, $70 rally in the Gold Futures, prices failed again to break $1700 four days in a row. That technical failure was just what was needed to drop the market on its head and now we begin the week at trendline support.
I am yet to find any reasonable explanation for the reversal in the Metals other than technical failure, option expiration, and one other story. There is speculation that the unwinding of the rally in the Metals is largely due to the fact that major funds were offsetting gains in the Metals to meet margin calls triggered by the huge selloff in AAPL. I saw a chart last week that put the APPL chart and Gold on the same page and it definitely looks like there is a correlation between the two.
So this week, instead of rattling off the results of reports and trying to anticipate the results we wait on this week, I will simply fall back on the technicals of the daily chart and recommend new positions based on support and resistance. For starters, it will be important to see how Gold holds up against the support pointed out in the chart below. This price and the $20 range below will be important for direction this week.
As always, feel free to call or email my office with any comments or questions regarding this report. I can be reached by email at [email protected] or by phone at (888) 272-6926. Good luck this week!
Thank you for your interest,
Senior Market Strategist
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