From the Trading Desk:
Sustained USD weakness since last Friday’s poor US employment data has translated into safe haven buying for gold this week. For three days, the 50 day moving average (currently at $1,248.30) capped the market but gold decisively broke through it yesterday as the USD had its fourth consecutive down day against a basket of currencies. US treasury yields have trailed lower this week and the likelihood of a June Fed rate hike continues to diminish. The 50 DMA now becomes support right around $1,250 while $1,300 is the next key resistance level. Silver broke through its own 50 DMA yesterday and had a very impressive 4% move higher. It closed above the key $17 figure and has extended gains today. Near term resistance is at $17.50 but $18 is the major level to watch beyond that.
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.