Gold futures in the August contract is currently trading at 1,400 hitting a 6 month high after settling last Friday in New York at 1,344 an ounce up over $55 for the trading week all on concerns of a conflict brewing with the country of Iran.
The U.S. dollar has hit a 3 month low as well as helping support prices as the fundamental situation for gold has changed very quickly as strong demand continues to push up prices. I am currently sitting on the sidelines in this market, but as I've written about in previous blogs, I still think gold is going higher as I see no reason to be short.
I have bullish recommendations in silver and Palladium as I'm keeping a close eye on platinum to the upside as the 10-year note hit 1.99% this week hitting a multi-year low as that is extremely supportive towards gold prices.
The next major level of resistance is around the 1,450 area as there is still room to run to the upside as you have to remember the all-time high was hit in September of 2011 above the 1,920 level and if you look at the monthly chart, in my opinion, it looks very bullish.
If you have a futures contract place the stop loss under the 10-day low which stands at 1,325 as an exit strategy, however, that will be raised daily starting next week.
CHART STRUCTURE: IMPROVING
Continue reading "Weekly Futures Recap With Mike Seery"