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-- Posted Friday, 3 April 2009 | Digg This Article | Source: GoldSeek.com
June Gold: Open= 905.0 High=911.8 Low=892.5 Last= 893.7 -15.2
US stock markets ended the week higher, today, making it four weekly gains in a row. The bear rally continues but it is not lending support to gold prices, which have slumped roughly $65 per ounce over the past two weeks. There’s a growing sense of confidence in the market that a bottom is closer rather than farther in this recession. Perhaps that is premature thinking, as jobless figures will continue to climb in the months ahead, the housing market has returned to pre-bubble levels near 2003 prices which was a much more economically friendly climate, and new tax increases in many states are phasing in. The worst of the panic is likely behind us, though the general economy could simply drag for some time, but that might be a better scenario than two months ago when every other news story ended with ‘the worst since the Depression”. Now, stories are a bit more explanatory and will state that such-and-such economic figure is the worst since 1994 or 1982, etc. Simply making blanket statements that we are heading towards the next Depression was part panic, part hype, and part political manipulation.
With cooler heads prevailing and many of the Obama Administration’s proposal adopted, the rhetoric has lightened, which has allowed the markets to step out from under a barrage of selling. Of course, for gold traders, the relaxation of imminent fear as taken some of the heat out of the bull market and the anticipatory rally of inflation may be over. The next rally to come will be the realization of inflation. The pump has been primed, but the key must be turned, and the engine must catch. We’re still fumbling with the keys. With the internal supply/demand fundamentals for gold weakening currently, it may be asking too much for prices to find support at the moment. Too much talk of ECB and IMF gold sales and weakening Indian demand has caused many too back off for now. If the March 18 lows are violated, the next downside target is near $860. A retracement to the 61.8 Fibonacci level would be to the $820 level. Review charts on these markets here www.britefutures.com. Remember that futures and options can be used for bullish or bearish positions; 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 us at info@altavest.com. Visit www.altavest.com to request a Free Trading Kit. Keep in mind that there is risk of loss in all trading.
Thank you, Thomas Hartmann Altavest Worldwide Trading, Inc. 800 994 9566 x109 949 488 0545 x109 Fax 949 488 7625
-- Posted Friday, 3 April 2009 | Digg This Article | Source: GoldSeek.com
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