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 (November 25th through November 29th)

New highs were seen in US equities last week as investors continue to bank on the FED maintaining their participation, at least until the end of the year.

Due to the shortened Holiday week in the US, we expect lighter volume across the board in the futures markets. Anyone that has traded Holiday markets over the years knows that low volume trading can either bore a trader to tears, or leave markets vulnerable to volatile, directional movement. Being aware of the potential for either scenario is important this week, and making arrangements for either is smart.

Because of the shortened schedule, economic figures from the United States are crammed into the week, including housing, consumer confidence and unemployment figures. Foreign markets will also release their normal scheduled data, so it will be important to be aware of European, Japanese and Chinese date that is announced in overnight markets.

The Gold Futures continued a slide last week after closing below Octobers low print. It appears that the Summer low is the next apparent target. With continued confidence in US Stock Indexes, it will be difficult for Gold to catch a bid. If there is a sudden reversal in US equities this week, it will be important to pay attention to whether any of the profit extracted from stocks is used to buy the dip in Gold. It is certainly a possibility, but at this point not etched in stone.

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 [email protected].

Thank you for your interest,
Brian Booth
Senior Market Strategist
[email protected]

** 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.

11 thoughts on “Gold Chart of The Week

  1. Gold is in a Bearish state and likely to be so for rest of year - However, gold typically rallies in the 3/4 day lead up to 'Thanksgiving' - so there could be some higher levels for the Bears to get set at next week...

  2. I expect the chart pattern to complete by testing 1180, based on the unbelievable current mentality.. Gold is being traded based on ignorance of economic fundamentals and/or how fundamentals relate to the Fed’s created Economic Monster that must be fed trillions of borrowed and printed money to keep it from collapsing and taking the economy and the financial system with it. Regardless, eventually, a day of squaring the debit side of the balance sheet will arrive and that will be the day when gold (and silver) bullion will be handy to own. Just one item from the comprehensive interactive chart at : US TOTAL DEBT $60,152,450,550,936 and counting fast, should tell anyone something!


  4. PLEASE: proof-read and edit these postings more closely, as they lose credibility otherwise. Thanks!

    1. "lose credibility"....only if you don't know who these people are. Once you get to know them, insignificant things like that don't matter. Thanks for your concern.

      1. Chris, it is exactly and precisely attention to even the smallest details that shows the mark of the master. There are people reading this whose life savings may be involved, and if they read something that was unintended, it could have serious, even fatal, consequences.

        Let me illustrate by an anecdote which Werner von Braun used to recall about his own career:

        Von Braun had just graduated as an Honours Student Engineer from Berlin Polytechnik [not sure on this, but close enough] and he reported for his first day at an engineering complex where parts were made for the first rank of German fighter planes. He was told to report to a shop steward, an older fellow on the floor of the machine shop, instead of going upstairs to the suspended workrooms of the engineers, a typical layout in German factories, so designers could immediately relate to and work w/the technicians who built what they designed.

        The steward introduced himself, gave him a tour of the facility, and then handed him his first design assignment. He placed a chunk of Rhodium, a dense metal, about 2 cms to a roughly cubic side. "You will take this and bring to me a cube which is perfectly square on all corners and exactly 1.0 cm to a side and edge."

        Von Braun was at first speechless, then he burst --and I paraphrase!-- that this was ridiculous; he was the highest achieving graduate of the most prestigious engineering school in Germany and this was a task for a mere machinist. Please bear in mind that under the old German system [I don't know what it is now], an engineer would have spent four years in a Vocational Hoch Schule, which von Braun had, learned how these machines worked, and to operate the most common, such as a lathe and drill press.

        The steward let him finish his rant, and then said the following, which I paraphrase from forty year's memory, but you'll get the idea:

        "Here you are, refusing to perform a simple task, one which is surely within your competence. Please let me know when you are successful." He then turned and left.

        It took von Braun three days to make a simple cube that was precisely what the steward required. When he FINALLY got it right and presented it to the old boy, he was told the following:

        "You came here demanding me to send you up to Engineering, so you can design aircraft which one of our men will fly into battle. Yet you had considerable difficulty making something which is far more simple than the simplest part on one of our planes. Such parts are what our most valued men depend on to see them safely through battle after battle. You wanted me to trust their lives to you, but you couldn't get this correct, even if a life depended on it. You may go upstairs now, but never forget this lesson."

        End of story. Yes, every punctuation and even the simplest word are very important, for we are called to assist people in ordering their lives, and even their families in some cases. I wrote my Canadian Commodities Broker Exam in 1987, and having sat on 'both sides of the table' now, can attest to the absolute truth of this in all human dealings.

        Please remember: "eats shoots and leaves": now what do you make of this?
        I await your reply, and wish you all the best!

        Cheers, Joseph E Fasciani
        Esquimalt, BC Canada

        1. Joe, are you saying that to have success in the market you need to have every angle covered, and seek perfection least you make a mistake? If so, I disagree, the market is not perfect and neither is anyone else. If you are so overwhelmed with paralysis of analysis you will be so rigid in your dogma that it will wind up costing you plenty. Joe, do you know the difference between "cutting all emotion out" and using your right brain intuition?

Comments are closed.