From the Trading Desk
The downward pressure on gold continued yet again today as it traded lower for the fifth time in the last six trading sessions. Some heavy selling emerged around the NY open which pushed gold down to just above its 100 day moving average. But, yet again, the 100 DMA held as support and gold was aided in its recovery by weaker than expected US economic data. Retail sales in the US fell .30% in August, declining for the first time in five months, which helped the yellow metal recover to $1,320 before ultimately trending lower as the trading day wound down. The short term trend remains downward for gold and it looks like the key $1,300 – $1,305 area will be tested again before next week’s FOMC meeting. Silver has managed to hold up better than gold this week and is consolidating around $19. Near term support is coming in at the 100 day moving average of $18.50, a technical indicator it hasn’t been below since February of this year.
Gold and silver are really fighting their $1,300 and $19 resistance areas of late. But gold was still weak again today, even though the market was higher, miners were higher and the dollar didn’t fall but 5 cents. Something is up.
I still say the dollar will be the key and with China, Hong Kong and South Korea on holiday tomorrow, I don’t expect too much trouble, but what an opportunity to do something if Europe and the U.S. want to have some fun at these countries expense by pushing prices against their positions. It’s good to be the king!
I will be writing an article soon on SDR’s and what Jim Rickards is up to scaring everyone to get out of the dollar. You’ll appreciate my candid take on what the truth of the matter is.
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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.