Chart of The Week - Gold

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.

After a week where we saw a correction in stock index futures, we will be looking at June Gold Futures (NYMEX:GC.M14.E) to receive a possible flight-to-safety bid. The focus remains on the Russia-Ukraine conflict, where the prospect for violence is extremely high. This shifts the gold market’s focus from physical commodity fundamentals to safe haven issues. Further Russia-Ukraine tensions or continued pressure on stock index futures can provide an influx of buyers in the gold market.

On the technical side, gold has shown a lot of strength after rebounding from its April 1, 2014 low of 1278.3. Last Friday’s session was relatively quiet, consolidating and trading within the previous day’s range between 1324 and 1310.8. For this reason, along with multiple fundamental catalysts, I would be a buyer in June Gold futures and look for it to reach $1350.00 in the near future.

For a swing trade, I would be a buyer if the market retraces down to $1324.00, last Thursday’s high print. If filled, I would look to place a stop below Friday’s low of 1314.7 and roll it up accordingly to mitigate risk.

To take advantage of this move with a long-term viewpoint, I would look to purchase relatively inexpensive call options and option spreads where risk on the position is limited to what you pay for the option.

I advise clients on trading futures and futures options markets on a day to day basis. If you have any questions regarding this chart or questions regarding trading futures and futures options, feel free to call me directly at 888-272-6926.

Thank you for your interest,
James Leeney
Account Executive
Phone: (888) 272-6926

** 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.

9 thoughts on “Chart of The Week - Gold

  1. The “PAPER BUJGS” (bugs can live in paper, NOT gold) and the bankers, have been waging a war against a higher gold price because it detracts from their worthless paper as an “investment”. Regardless of all the unbelievably negative hype and plainly ignorant b. s. by the establishment media, I feel very comfortable being 95% INVESTED in gold and PMs and only enough green-inked paper for emergency purchases. Based on the Economics Principles that I know, The Fed’s House of Cards should collapse and all forms of paper shall become worthless.

  2. As I look over this proposed trade I can't help but notice if you had access to 24 hour trading you would have filled about 2a.m. and stopped out around 7a.m. today. That's pretty quick counter movement to the direction this was supposed to go. At least with options you only lose premium and commissions! Now I'm watching to see if it holds the 1310 support it found at about 8a.m. Meanwhile I'm loving the gains in GLL, DUST and JDST that seem to be benefiting from the same movement. Price is just beginning to level off and possibly retrace, but JDST is up almost 15% and it's only 9!

  3. Well yesterdays article on Bloomberg talked of Gold Bears wagering wrong again as the Feds talk favors gains. However yet again the metal is down this morning. The metal has been a disastrous investment for many who bought at the top of the market and where convinced into doing so by the 'media.' With no yield and fast moves, it is a hard market to trade, let along invest in.

  4. The swing high formed in the overnight marks the cycle peak. Gold should now trend lower for the next 2 to 3 weeks. I expect gold to break below the previous April 1 low of 1278.3

    1. The swing high formed in the overnight marks the cycle peak. Gold should now trend lower for the next 2 to 3 weeks. I expect gold to break below the previous April 1 low of 1278.3

  5. The "safe haven" phony premise has been debunked over and over. 1987. 1992 Mexican Peso collapse. 1998 Asian Contagion, LTCM. 9/11. 2008 meltdown. 2011 European collapse, 2012 Cyprus collapse. 2012 Obama re-election. 2012 QE. Need more?

    What really is a driver, is less production by shoddy mining outfits, a falling dollar, and an actual realization of inflation by the masses.

    So, knock it off. You are not helping. Thanks.

    Sincerely, the rest of us.

  6. How does your guidance-for-GOLD sound to me? I sounds SOUND. Thanks and best of luck.

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