AUG 27
Gold At The Highest Since April On Stimulus Hopes From The US
Gold prices advanced about $7 on Monday hitting a 4-1/2 months high amid expectations of further monetary easing from the U.S. Feds, offsetting the weak fundamentals.
Federal Reserve Chairman Ben Bernanke indicated in a letter released on Friday that the Fed had room to deliver additional monetary stimulus to strengthen economic growth.
Leaner monetary policies in the U.S. would attract investors to gold, considered a hedge against inflation as a result of extensive cash-printing and growth improvement.
Gold is trading as of this writing around the $1673.15 per ounce after rising as high as $1676.95 per ounce from the opening and the lowest of $1670.11 per ounce.
Gold investors will be closely watching any developments from central banks, especially the Feds who will meet in Jackson Hole, Wyoming, later this week.
Clues on the next steps central banks will take regarding the euro zone debt crisis and how to stimulate global growth is crucial for sentiment, thereby caution will persist.
Silver is trading around the $31.00 per ounce after rising earlier this morning to the highest of $31.24 per ounce from the opening and the lowest of $30.72.
Economic data will be restricted today to Germany’s IFO confidence data, while markets in UK are closed for a public holiday which will make volumes thinner.
OVERVIEW The metals we’re strong last week and prices are at significant trend lines on the chart. We saw strength on the upside and strength on the downside in as much as the pullbacks were so shallow. The problem is price is at the key resistance lines. Strength has remained over the first 7 hours of Monday morning. While its still early the point we’re making is that we would expect a normal pullback in this area, but if this strength continues into today, it will become possible for gold to flush thru the resistance on the chart below and begin a trek towards 1730.
IF WE CLOSE ABOVE 1685 odds increase for higher price. Even the strength here asks the question, should one pick up a position here? At the moment, I’m trying to buy one contract at the 1655 area but I’m beginning to wonder if we can pullback that far? If we start moving above 1690 I’ll reconsider entering anyway. Gold Hourly Chart Price reached the upper end of the current trend channel and the trend at the moment is very strong. Even the pullback last week began at the very end of the time range (Thurs 11am NY) and could only muster 10 dollars lower before price turned back up. Even the action so far on Sunday has been very strong as every minor pullback is picked up and sent to the 1678-1679 area. As of this writing only one pullback occurred and that was just a brief drop to 1675.
The two key spots where price can find resistance is 1678-1680 and 1683-1688 which represents the upper channel lines. A weekly close above 1685 would suggest 1725-1735. Thus going long here obviously poses significant risk. The other side of the coin is that where there is risk there can be reward. It would be likely that we would see a quick rise to 1725-1735 pretty quick.
Gold prices advanced about $7 on Monday hitting a 4-1/2 months high amid expectations of further monetary easing from the U.S. Feds, offsetting the weak fundamentals.
Federal Reserve Chairman Ben Bernanke indicated in a letter released on Friday that the Fed had room to deliver additional monetary stimulus to strengthen economic growth.
Leaner monetary policies in the U.S. would attract investors to gold, considered a hedge against inflation as a result of extensive cash-printing and growth improvement.
Gold is trading as of this writing around the $1673.15 per ounce after rising as high as $1676.95 per ounce from the opening and the lowest of $1670.11 per ounce.
Gold investors will be closely watching any developments from central banks, especially the Feds who will meet in Jackson Hole, Wyoming, later this week.
Clues on the next steps central banks will take regarding the euro zone debt crisis and how to stimulate global growth is crucial for sentiment, thereby caution will persist.
Silver is trading around the $31.00 per ounce after rising earlier this morning to the highest of $31.24 per ounce from the opening and the lowest of $30.72.
Economic data will be restricted today to Germany’s IFO confidence data, while markets in UK are closed for a public holiday which will make volumes thinner.
OVERVIEW The metals we’re strong last week and prices are at significant trend lines on the chart. We saw strength on the upside and strength on the downside in as much as the pullbacks were so shallow. The problem is price is at the key resistance lines. Strength has remained over the first 7 hours of Monday morning. While its still early the point we’re making is that we would expect a normal pullback in this area, but if this strength continues into today, it will become possible for gold to flush thru the resistance on the chart below and begin a trek towards 1730.
IF WE CLOSE ABOVE 1685 odds increase for higher price. Even the strength here asks the question, should one pick up a position here? At the moment, I’m trying to buy one contract at the 1655 area but I’m beginning to wonder if we can pullback that far? If we start moving above 1690 I’ll reconsider entering anyway. Gold Hourly Chart Price reached the upper end of the current trend channel and the trend at the moment is very strong. Even the pullback last week began at the very end of the time range (Thurs 11am NY) and could only muster 10 dollars lower before price turned back up. Even the action so far on Sunday has been very strong as every minor pullback is picked up and sent to the 1678-1679 area. As of this writing only one pullback occurred and that was just a brief drop to 1675.
The two key spots where price can find resistance is 1678-1680 and 1683-1688 which represents the upper channel lines. A weekly close above 1685 would suggest 1725-1735. Thus going long here obviously poses significant risk. The other side of the coin is that where there is risk there can be reward. It would be likely that we would see a quick rise to 1725-1735 pretty quick.
For now, I’m trying to buy 1655.50 December gold
as we enter Monday.
Buy 1655-1658 , exit 1668--1672, stop loss 1650
Buy 1655-1658 , exit 1668--1672, stop loss 1650
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
