From the Trading Desk
Chinese equity trading was halted again overnight for the second time this week. The yuan fixed at a new low and Chinese equities dropped 7%, the loss limit which halts trading. The dramatic sell off in China has sent shock waves through other markets with global bourses taking the biggest hit. In the US year to date, the Dow has lost 900 points while the S&P is down nearly 5%. The fear in equity markets has translated to positive price action for gold as participants once again appreciate its safe haven allure. Gold is up $50 so far this year and is trading above $1,100 for the first time since early November. After four up days to kick off the year though, gold may have trouble getting through resistance at the 100 day moving average of $1,111.50.
Silver had been dormant recently but finally awoke today and made a clean break away from the $14 handle. It closed above its 50 day moving average and will look towards the 100 day moving average at $14.72 as the next target.
More coming tomorrow. Sick today.
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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.