From the Trading Desk
In the aftermath of gold’s violent drop at the beginning of October, it has spent the last three weeks consolidating around its 200 day moving average. Physical coin and bar demand in North America was robust for about a week after gold’s drop under $1,300, but it has since slowed down materially. With volatility falling, participants have grown quickly accustomed to these price levels and we need to see a break from this trading range in order to attract fresh interest. The immediate upside target is the 200 day moving average at $1,272. It has been challenged eight of the last fifteen trading days but hasn’t been decisively broken. To the downside, $1,240 is near term support. Silver’s 200 day moving average, currently at $17.40, held perfectly on two occasions as support earlier in the month. This remains intact while offers will materialize around $18.
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.