Gold Chart of The Week

Each Week will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report August 26th through August 30th

A late week recovery in equities was enough to keep markets guessing on a direction as we inch closer to the September 18th FOMC announcement.

In the first half of last week’s trade, US equities were under pressure as traders booked gains on long positions in anticipation of a taper from the FED. But by late week, the “buy the dip” mentality that has supported equities for months returned and stopped the bleeding.

Until global markets are finally given the FED’s final decision on their Quantitative Easing plans, I believe traders should expect similar market behavior to what we saw last week. In light volume Summer markets, we should expect decent volatility on any news in the US, and abroad. Lighter volume markets give investors and traders the ability to create exaggerated swings in price with larger lot orders. When European traders and US traders return from Summer break, the timing will line up perfectly with the FED’s QE announcement. This should provide better directional movement. Until then, we expect further volatility and good intraday trading opportunities.

Gold Futures had a relatively quiet week last week until a late week surge higher. Until Friday, prices in the December Futures were rangy and without a convincing direction. But Friday’s rally drove prices to the obvious target of $1400 before running out of buyers. I continue to be skeptical of an extended rally in Gold until we get past the FED’s decision in September. While the chart below shows a nice bullish uptrend since June, I am still not confident in making long term commitments to the Gold Futures until September 18th.

If prices this week can begin closing above $1400 an ounce, it will be a good sign for further upside, perhaps an additional $25 higher. A failure to close above $1400 would suggest a lack of confidence, and profit-taking may ensue. Trading with stop orders and profit targets is how I plan to continue trading Gold.

If you would like to discuss trading in the Futures and Futures Options markets with me, please feel free to call or email me directly. You can reach me directly at (888) 272-6926 or by email at bb****@lo*************.com.

Thank you for your interest,
Brian Booth
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.

4 thoughts on “Gold Chart of The Week

  1. One side u r saying gold may touch1595 level n same time saying ramain away to make long .tell clearly

    1. Dear Doshi,

      You are right, my both points are opposite of each other, accordingly, note that 1555 and 1595 both are maximum probable levels, if considering other related factors, bull run up-to certain point seems quite difficult to achieve, so it is quite possible that the same levels may be remained un-touched, and therefore i advice to keep away from any long position.

      Second more important thing is, refer lines of my said post like,
      " because again down movement, which may possibly sharp and fast, and also without providing any trade exit chance from long position.

      And finally, for batter safety targets there are some periods, when we require to avoid some clear or easy opportunities too, even we have identified it. for any more clarifications, you may contact me on 91 94279 74838.

  2. Again i i express same view, As per the Golden rule like " Market is always Right " we must have to accept changed or turn around Gold movement, and may continue Bull Run some further too, and also it may try to touch maximum up to $ -1555 or even up to $ -1595.

    In INR Terms, next big hurdles will may be at about in range of Rs. 32,900 to Rs. 33,800 actually, Indian Gold Market got double impact of both international bull run and deflated Value of Indian Rupee against all major currencies of Developed countries, like Euro, Pound and Dollar, but the same double impacts will also apply even in the event of down fall too, so such possible fall will me more sharp and faster.

    However, above referred $ 1555 and $ 1595, both these levels are very very crucial, and that will only confirm any long term sustainable bull run, so if gold will failed to break both such upper levels, down trend will continue again.

    With a view to above, at present. one may not short Gold, but also keep away from taking any positional long too, because again down movement, which may possibly sharp and fast, and also without providing any trade exit chance from long position. This is un certain or illusive face, and we must required to be wait, for any specific reliable confirm next trend signal.

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