From the Trading Desk
Yesterday, economic data showed that sales of existing US homes rose by the highest amount since 2013. The figure came in at 5.19 million annualized for the month of March which beat the median forecast by economists of 5.04 million. The Mortgage Bankers Association also reported a 2.3% increase in mortgage applications on the week after a decrease for the previous week.
The positive US data sent gold immediately lower. Stops were triggered around $1,192 and gold made a swift move to the low of the day at $1,185 basis the active June gold futures contract. Far East physical buying helped lift the yellow metal from the lows and it traded sideways for the rest of the trading session though. The $1,180 – $1,185 area has now been tested and has held on six separate occasions over the past month. This is a key area to watch and if it gives way, there is no major technical support until $1,150. Silver decisively moved below $16 yesterday and this has now become near term resistance. Silver’s trend has been lower of late though and any rallies will likely be viewed as opportunities for traders to establish or increase short positioning.
Today’s economic data was nothing but good for gold all the way around yet the yellow metal couldn’t get past yesterday’s highs. The dollar did fall and a break of 97 on the index may get us off to the races in gold.
Initial jobless claims came in lower than expected along with the manufacturing PMI and new home sales. The trifecta for gold! The data continues to disappoint, but the stock market doesn’t seem to care. It has a life of its own. I will note however that Google’s earnings and revenue’s missed expectations after hours while Amazon and Microsoft topped expectations. .
Up tomorrow is the durable goods orders data which is expected to be negative.
I still see a break of $1,178.65 as trouble for anyone long gold or gold mining stocks but as I have said the last 3 days, I don’t lean this way. I still lean long for the short term. Please don’t get this confused with my thinking that we will not continue to fall because I do still think we break $1,000 an ounce in gold. This will only be another dead cat bounce if it comes.
There was an error in the link I gave out a couple days ago for you to view a free peak at the ETF Research Trading Service we offer. You can find it by clicking this link: https://buygoldandsilversafely.com/etf-research-trading-service/
The cost of the service is $300 a quarter and I think well worth checking out, not because I am biased, but because I really do want you to succeed in your trading with the right kind of research and guidance.
By clicking on that link you will get an idea where we are with the mining ETFs as well as many others. I track 30 of them daily giving signals of when to go long.
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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.