Gold finally got going overnight today and moved a bit higher during U.S. trading. Do we have liftoff now? I don’t think quite yet. Still would like to see one more test lower if we can get it.
Next week’s Fed decision will finally give the “sell the news” permission for gold to take off. There is even talk of a .50 hike but I think that is unwarranted. Either way, next stop for gold is over $1,300. The dollar is still a key metric to watch.
From the Trading Desk
On Friday, US non-farm job growth for the month of May came in much weaker than expected at 138,000 jobs added, widely missing the consensus of 181,000. The USD sold off and gold, which had been stalling, closed out the week at five week highs. The lackluster jobs data has made participants reassess the Fed’s policy for the remainder of the year. With the likelihood of a September rate hike easing, President Trump dealing with potential legal issues, and geopolitical tensions in the Middle East escalating in the form of a Saudi-led coalition cutting diplomatic ties with Qatar, gold has pressed higher yet again this week. Gold is currently right around the highs of 2017 and near term resistance at $1,300 is the level to watch. Despite weak fabricated coin and bar demand in the US, silver has pressed steadily higher over the past month. Support is coming in at the 100 and 200 day moving averages around $17.55 and resistance is looming at $18.50.
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.