June gold futures closed slightly higher today, near even on the day despite a $13 trading range. After hours trading has seen prices inch up slightly but overall the market held up fairly well despite a sharp drop in US stocks.
Retail sales fell for the second month in a row, lead by drops in gasoline and electronics expenditures.The US dollar rallied a tad higher on the day and the energy markets closed mixed, with gasoline higher but crude and natural gas lower.The key to the gold market is economic recovery, which would help spur inflation down the road, so it was actually positive to see gold hold up in the face weak economic data this morning.
There are some who believe that the government has glossed over the bank stress tests and that there may be more hidden dangers.A few banks were able to hide large losses due to accounting practices that cannot be hidden when reporting for the next quarter. The recent moves in stock prices, lead by financials may have been too much too fast.Traders should remember that economic uncertainty has also helped support the US dollar, as well, so the picture is not entirely clear that gold will benefit directly from renewed fears.
Today’s close in June gold, while higher after yesterday’s breakout, did not garner much follow through strength from the side lines.While it is hard for those neutral to ignore the break in the downward trend in prices, it appears that many are still sitting on their hands.Prices may have to rally further to get people excited. For those that get long, stops ought to be set below the most recent lows around $885.The next upside objective is $935 and the longer-term one is up at $998.It could be a slow grind, so traders could consider selling calls against their futures positions.
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 our online paper trading service BriteTrak,contact me attom@altavest.com. Visit www.altavest.com to request a FreeTrading Kit. Keep in mind that there is risk of loss in all trading.
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Disclaimer
The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com,
is strictly prohibited. In no event shall GoldSeek.com or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.
OilSeek.com
