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-- Posted Monday, 3 February 2003 | Digg This Article
April Gold: Close = $371.6, +2.5
It wasn’t a cake walk for the bulls today, as early on the market was pressured lower with help from a stronger US dollar and a small equity bounce driven by positively construed economic data. The tragic loss of the Space Shuttle Columbia was obviously an influence to the markets, but it’s difficult to know how such an event will manifest itself in regards to prices. The late surge in gold has put us near fresh contract highs, it appears the bullish freight train remains on the tracks. After all, would you want to be short gold right now? There was a small correction last week but prices failed to fill in a gap before investors and traders bid prices back up. Powell is set to speak to the UN and unveil evidence that proves Iraq has violated the security resolution, and possibly reveal ties with Iraq Al Qaeda. Blair came out once again in strong defense of the need to disarm Saddam, but there does remain grumbling from the usual cast of characters. The rift of tension across the geopolitical landscape remains deep, and with few investment alternatives in the limelight, gold has attracted newfound attention this year. It's fair to say that until the Iraq issue is resolved, and until stocks scream higher as investors regain their confidence, the gold market will have legitimate cause to remain well supported and make a stab to $400. Take note of the large gap on the chart that begins at 363.5 from the 23rd and would be filled in on a pullback to the 361.5 area. Last week it appeared the gap would be fully filled in, but that was not to be. We’ve been in an uptrend for about six months, where is the top? Who knows, just do your best to ride the trend, but always manage risk and protect profits. 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 = $483.5, -2.5-cents Yes, the silver market has lagged behind gold, but will it catch up anytime soon? There are some who are purporting that a silver/gold spread is in order because silver is undervalued in relation to gold. Well, maybe and maybe not, after all, what is “undervalued? And, isn’t the marketplace the mechanism which establishes value, not our notions, wishes or interpretations? There has been a lack of fresh internal fundamental news for some time, action has been led by gold. Silver recently hit a recent 7-month high and is perhaps building steam for another break into fresh high ground. We’ve been 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 stuck in the middle of a muddling economy. 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 Monday, 3 February 2003 | Digg This Article
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