-- Posted Thursday, 30 January 2003 | Digg This Article
April Gold: Close = $369.7, +$2.3
Gold opened lower due to pressure from a stronger dollar. However, in spite of dollar strength there was no stopping the bullish freight train as gold clamored off lows to rally. Yesterday, there was a small, post State of the Union stock rally, but this morning equities slumped, likely helping to fuel today's bullish gold cause. After gold closed the minutes of the Fed meeting were released and this unleashed a torrent of selling activity in stocks. On the heels of this equity weakness, gold bulls could benefit once again tomorrow.
Buying interest from gold investors and traders appears steady, and as can happen in a bull market, dips are attracting fresh buyers. The gravity of the Iraq situation has been on the forefront of gold investors minds, and with few investment alternatives in the limelight, gold has attracted newfound attention this year.
There is talk that Saddam may try to be coaxed into exile, but is it likely he’ll leave his over 100 palaces without a fight? There is always that hope, and certainly a peaceful resolution is preferable. But, the White House said today there is a “Mount Everest” of evidence against Saddam, and by next week we should know the details. We can’t predict the outcome of any conflict, but until it’s over gold bulls will likely retain control of the reigns.
Pullbacks have occurred the last few days, and that should come as no surprise to anyone. If you are trying to buy near the $360 area, earlier in the day it appeared you had a chance, but the dip wasn’t deep enough. It's fair to say that until the issue is resolved, the gold market will have legitimate cause to remain well supported and make a stab to $400. Be sure to watch TradeScope daily for order adjustments. Remember, futures and options offer much flexibility as one can just as easily be short or long any market. Each contract/option = 100 ounces, a $1 move in a futures contract = $100. Contact me anytime to discuss strategies to fit your needs.
To open an account and receive trading recommendations on gold futures or options contracts (also stock indices, energies, currencies, etc.), or to use PaperTrader Online contact me at erik@altavest.com. Visit www.altavest.com to request a Free Starter Kit. Keep in mind that there is risk of loss in all trading.
March Silver: Close = 4.87, +6.5-cents
After a quick jab below 480, silver gained momentum along side the gold rally and closed with authority in the black. There has been a lack of fresh internal fundamental news for some time, action has been led by gold. Silver hit a 7-month high last week, is now consolidating and is perhaps building steam for another break into fresh high ground. Last week the white metal came within shouting distance of the 500 barrier, but was held back by the struggling gold bulls. The market remains in an uptrend, but still lags behind gold in terms of flexing its muscle, mostly because it’s an industrial metal. We’re still anticipating a run to the 500 area soon. Always maintain your perspective by keeping an eye on daily, weekly and monthly charts as opposed to intra-day charts. Each contract/option = 5,000 ounces, a 1-cent move in a futures contract = $50. Contact me anytime to discuss strategies to fit your needs.
To open an account and receive trading recommendations on silver futures or options contracts (also stock indices, energies, currencies, etc.), or to use PaperTrader Online contact me at erik@altavest.com. Visit www.altavest.com to request a Free Starter Kit. Keep in mind that there is risk of loss in all trading.
-- Posted Thursday, 30 January 2003 | Digg This Article
