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-- Posted Monday, 14 April 2003 | Digg This Article
June Gold: Close = $324.9, -$3.6
What the gold market needs is fresh blood, and to compel new buyers to enter the fray gold needs a good story. The news from Iraq is positive and the “war” aspect of the campaign may be over soon. In some ways gold bulls will view this as favorable as finally the trading aspect will return to some normalcy. However, bears might argue that the buoyancy the war provided is now deflated, so prices should decline. In either case, the most direct driving force continues to be the direction of the US dollar and equities. However, other hotbeds of potential turmoil are now on the radar screen, such as Syria and North Korea. Economic data isn’t doing much to impress anyone. Therefore, stocks remain tepid at best and the dollar is struggling, so gold might attract investors for another ride to the $390 area once again. It's not possible to predict the daily change of tide on the geopolitical landscape, just as one can't always correctly forecast market direction on a short-term basis. Do your best to follow the longer-term trends, initiate positions with a favorable risk/reward ratio and try to filter out the static. Monthly gold charts show gold still remains in a longer-term uptrend. With prices having fallen somewhat consistently over the last couple of months, is the correction over? Prices are not yet above the 5, 10 and 20 period moving averages, but when gold closes consecutively above those averages look for continued strength. Meanwhile, aggressive bulls that bought in the low 320’s are doing just fine, but should move stops to at least breakeven levels. Be sure to watch TradeScope daily. Remember, with futures and options one can be short or long, feel free to contact me to discuss trading strategies. Each contract/option = 100 ounces, a $1 move in a futures contract = $100.
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.
May Silver: Close = 453.8, +4.5-cents
We're now about 20-cents off of the lows from last month, and for the first time in a while, silver seems to be moving ahead of gold. We broke out through the 450 area but volume doesn’t appear to be huge. The chart shows technical indicators now headed higher. If long, exit on a close below 448 and look for the next resistance area near 464, which is the bottom of a recent gap. Certainly there is room to rally, but recent history has shown us that silver will be more apt to rally only on the tail of a gold rally. 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, 14 April 2003 | Digg This Article
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