Gold futures in the December contract settled last Friday in New York at 1,907 an ounce while currently trading at 1,930, ending the week on a positive note as prices have now hit a 3 week high.
If you look at the daily chart, gold, and silver mirror each other, it looks to me that this commodity bottomed out around the 1,850 level. I will be looking at a possible bullish position once prices hit a 4 week high, and the chart structure improves; therefore, the risk/reward would be more in your favor.
If you want to jump the gun and are bullish at this point, I would place the stop loss under the 1,850 level as the risk would be around $8,000 per contract plus slippage and commission. However, I will be patient and wait for that risk to be lowered significantly. The U.S. dollar was down by 50 points continuing its bearish momentum as the board's commodity markets look very strong. I think they will continue their bullish momentum in next week's trade as I am also keeping a very close eye on a possible bullish silver position as I do not think the 2,100 level will be the top in gold.
CHART STRUCTURE: IMPROVING
Silver futures in the December contract settled last Friday in New York at 24.02 an ounce while currently trading at 25.08, ending the week sharply higher as prices have now hit a 3 week high.
I'm sitting on the sidelines looking at entering into a bullish position once prices hit the 4 week high. This market has been incredibly choppy over the last several weeks looking to bottom out, in my opinion. If you have been following my previous blogs, you understand that I am bullish on the commodity markets. I will not take a short silver position as I do not think the $30 level will be the high. We are just consolidating that run-up in price that we witnessed over the last couple of months. Continue reading "Gold And Silver Futures Mirror Each Other"