From the Trading Desk
With the UK out yesterday for a bank holiday, the precious metals started off the week quietly (even by August standards). A boring session was probably necessary though after the volatile trading day seen on Friday in the wake of Janet Yellen’s speech at the Jackson Hole economic symposium. Gold traded all over the place as the market digested Yellen’s commentary. The most notable line of hers was, “In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months”. The market is pricing in just a 33% chance of a September rate hike, but raising the rate is certainly on the Fed’s radar. Gold sold off today and closed right around the key support level of $1,310, a figure that has held on four separate occasions since late June. If this area gives way, next support is coming in at the 100 day moving average of $1.295.50.
Related posts
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.