Gold is still hovering above the $1,200 mark, trying to find direction. I think it will finally get some direction this week if we get the Greece situation resolved one way or the other. Below is the chart from Friday.
Silver is staying above it’s $16 resistance as well.
I would use these figures as your trading signal to be bullish or bearish, along with what the dollar does this week. If there is a resolution with Greece, temporary as it may be, the markets may look at this as bullish for the Euro and by default negative for the dollar. This could light a spark in gold and silver for the short term. Of course the opposite would be true as well.
From a trading perspective, I don’t care. I will jump on whatever the trend is. But anyone who reads what I write daily knows that my mind is made up on gold still falling below $1,000 an ounce bringing silver down with it. As I delve into the writing of my next book, Illusions of Wealth, the research is more than solidifying my thinking.
Another good source I utilize as one of my indicators is the team at Elliottwavetrader.net and Avi Gilbert. Recently, an analyst from Avi’s group, Zachary Mannes was interviewed by BNN (Business News Network) for a segment called; On the Brink of a Gold Bull Run? I suggest you watch the video and check out Avi’s site. Here is the link to the video.
http://www.bnn.ca/Video/player.aspx?vid=639578
Avi thinks we get one more low in gold and has also written an article on where gold will be in the next 40 to 50 years. The next great bull market: Gold $25,000
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About Doug EberhardtDoug 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
Disclosure:
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.