Weekly Gold Report (March 4th through March 8th)
I don’t know about all of you, but if I never hear the term “sequester” for as long as I live, I will not complain!
As expected, the US Government did a fine job of hyping the event and waiting until the eleventh hour to make a decision. And as usual, no compromises were made and stock indexes barely flinched. In fact, most global markets seemed to be following scheduled news as if the “sequester” debate was not even an issue.
With that non-event behind us, the market moves ahead to a week with very few US numbers until the Non Farm Payrolls at the end of the week. We begin this week under a bit of pressure after China reported that it is taking steps to cool off a strong Real Estate Market. Traders will be looking ahead to Interest Rate Decisions from Australia, Canada, Great Britain, and the ECB. I highly doubt any major changes in Economic Policy, but it is important to follow these decisions in case there are any surprises that would affect the Currencies.
April Gold Futures had a peculiar five days of trading last week and still leave me recommending shorter term trade recommendations only. Take note of the four closes below the long term trendline (arrow #1). Price action like this usually signals further pressure on the market, but Gold Futures ignored the action and spent two days closing back above the tredline (arrow #2). We now begin this week below that same line again, and at the lower end of a $40 range.
Looking at this type of movement in Gold would suggest to me that the best way to trade the Gold Futures would be as a day or swing trader. Early technical indicators and a strong US Dollar suggest selling into rallies, until resistance levels are violated.
If you would like to speak with me directly about shorter term idea in the Gold, please feel free to call or email me directly. You can reach me at (888) 272-6926 or by email at [email protected].
Thank you for your interest,
Senior Market Strategist
** There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data contained in this article was obtained from sources considered reliable. Their accuracy or completeness is not guaranteed. Information provided in this article is not to be deemed as an offer or solicitation with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this article will be the full responsibility of the person authorizing such transaction.