From the Trading Desk
After failing at $1,220 on four separate days in the last week and a half, gold gave up on pushing higher and has now traded lower for three consecutive days. Unsurprisingly, gold’s move south coincided with the USD gaining ground and with the Dow pressing above 20,000 for the first time ever. The bevy of contentious headlines being made at the start of Trump’s presidency are offering little in the way of safe haven bids for gold thus far. The short term driver of the yellow metal is clearly the USD and US equities. With the Chinese off for a week starting this Saturday in celebration of the Chinese New Year, physical demand out of Asia should drop significantly and gold may succumb to further losses. The next support area to watch for in gold is the 50 day moving average at $1,176 while rallies will be sold into ahead of $1,200.
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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.