Gold futures in the August contract is currently trading higher by $12 at 1,440 an ounce after settling last Friday in New York at 1,412 up about $28 hitting a new 6 year high as this market looks to test the 1,500 level in the coming weeks ahead in my opinion.
I'm not involved in gold, but I have bullish positions across the board in the precious metals as I still think gold prices continue to March higher and if you are long a futures contract place the stop loss under the 2 week low which stands at 1,384 as an exit strategy.
Gold prices are trading far above their 20 and 100-day moving average as this trend is strong to the upside as silver prices are up over $0.40 today and still looks very cheap compared to gold prices.
Volatility in gold has accelerated as that is here to stay in my opinion as I think strong demand will continue to support gold and the precious metals across-the-board as U.S. interest rates remain at extremely low levels which is bullish towards the commodity markets.
When you trade the commodity markets finding the trend is the most important aspect as the precious metals have now developed into strong trends as you should have bullish positions, not bearish positions as that would be counter-trend trading.
CHART STRUCTURE: IMPROVING
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