From the Trading Desk
With the UK closed this coming Monday for a bank holiday and the US heading into a three day weekend for Memorial Day, the markets are likely to finish out this week quietly. The USD has finally started to back off its recent highs with the USD index trading lower for the second day in a row. This has not translated into a sustained rally in gold though, participants still view this as a “sell rally” type market right now. This was exhibited overnight with gold breaking briefly above $1,230 only to find selling pressure to push it back down to the $1,220’s for the remainder of the US trading day. There is a double bottom of support at $1,218 from the past two days with more major support right below at the 100 day moving average of $1,215.50. Silver also failed to sustain gains overnight and trended lower during the US session. It closed under its 50 day moving average yet again and $16 is likely the next downside target.
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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.