-- Posted Thursday, 7 May 2009 | Digg This Article
| | Source: GoldSeek.com
June Gold: Open= 912.5 High= 926.5 Low= 908.9 Last= 911.7 +0.7
The initial jobless claims figure sent commodities and stocks soaring higher this morning as claims came in 34,000 less than last week. Banking stocks, gold, crude oil, and other markets shot up on the positive economic news, only to find the sentiment soured as Fed Chairman Ben Bernanke and President Obama took to the press about needing to clamp down on the financial industry. Or the market could have faced a classic ‘buy the rumor – sell the fact’ type of situation.
Although the bank stress-test results have yet to be released, most of the information has already been leaked out and banking stocks have priced in the expected news. All the rumors have now been priced in and traders looked to square away positions ahead of the release of the actual fact. How the facts play out to people’s expectations (better, worse, or the same) will give the market some direction in after hours.
Although gold did trade higher than the April 27th high, which is slightly positive news, the market could not hold above that level and has fallen back to around even on the day. Traders ought to wait for a close above $916 to get long for the next wave up in gold prices. For right now though, gold appears to be taking its cues from the stock market, as inflation will only be fueled as the economy picks up.
The short-term trend in gold is now neutral, but do to the still uncertain nature of the bank stress-tests bulls ought to see confirmed strength before getting aggressively long. Near term support comes in near $905 and then at $892. A break below the double-bottom at $865 would suggest a leg down towards 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.
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Thank you,
Thomas Hartmann
Altavest Worldwide Trading, Inc.
800 994 9566 x109
949 488 0545 x109
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-- Posted Thursday, 7 May 2009 | Digg This Article | Source: GoldSeek.com
