From the Trading Desk
Various headlines concerning geopolitical uncertainties have resulted in volatile price action for gold since Thursday of last week. The US’ surprise attack on a Syrian airbase last Thursday night gave gold immediate legs and allowed it to make 6 months highs. In response to the use of chemical weapons on civilians, US President Trump authorized a military strike which destroyed a fifth of Syrian President Assad’s working warplanes. The day following the strike, gold lost all of its gains as the White House elaborated that the US wouldn’t be sending in ground troops nor would it be drawn into a prolonged military conflict.
Gold finished out last week having failed, yet again, at its 200 day moving average and the yellow metal appeared vulnerable to further losses. Escalating tensions with North Korea and a tweet from Trump quickly reversed that sentiment though. In a show of US force, Trump sent a Navy carrier strike group into the waters off the Korean Peninsula and then tweeted, “North Korea is looking for trouble. If China decides to help, that would be great. If not, we will solve the problem without them! U.S.A.” Gold raced higher and closed above its 200 day moving average today for the first time since November of last year. While the yellow metal just made an important technical close, physical demand is still weak and there are some big levels looming overhead. Dating back to the high in 2011 of $1,920, there is an eight point down trendline that is currently coming in at $1,290. This and the psychological figure of $1,300 should be fairly well protected with offers.
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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.