From the Trading Desk
With the USD on the offensive and the Dow Jones reaching all-time highs yet again, the precious metals slid lower to kick off the week. Trading conditions were muted and gold managed to hold above its 100 day moving average at $1,220 for the second day in a row. This is clearly the short term level to watch and a break below it could lead to a swift move down to psychological support at $1,200. While US equities keep ripping higher, there is clearly some anxiety in the market as investors continue to add to ETF holdings. ETFs added 186,000 toz on Friday, the fifth straight day of adding to the position. Silver had a strong close to last week, finishing above its 100 day moving average at $17.91 and crossing above a five point trendline dating back to the high of $49.80 in 2011. Technically, it faked out traders though as it backed off its highs today and moved lower with the rest of the precious metals complex. Its 100 day moving average plus the double top at $18 formed over the last two trading days are now imposing overhead resistance levels. Keep an eye out for FOMC Chair Janet Yellen’s semi-annual report to the Senate tomorrow at 7 AM PT.
My personal opinion is President Trump will not allow any bullishness from Janet Yellen’s testimony to stop his push to get the dollar lower. We’ll see what he Tweets after the testimony.
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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.