-- Posted Thursday, 28 May 2009 | Digg This Article
| | Source: GoldSeek.com
June Gold: Open= 948.6 High= 964.9 Low= 944.0 Last= 958.5 +5.2
The hot news of the day came from the durable good reports, which showed the largest increase in six years, increasing 1.9% in April. This news, coupled with a drop in initial jobless claims, helped spur a rally in stocks and commodities today. While economic growth is still rather suspect, and will be so until consumer spending shows consistent upward movement, there are enough signs that the worst is behind us that warrants exposure to the gold market. Many markets priced in Armageddon and that clearly is not what we are currently experiencing. Naturally, stocks and some commodities are trying to rebalance.
Crude oil is now trading near $65, having nearly doubled in price since the low made in Dec ’08 at $32.40. There are arguments as to what exactly is spurring the rise crude oil, either inflation or supply/demand factors, and ultimately, there is truth in each position. What is becoming increasingly apparent is that the US dollar is weak and will continue to be so until the government steps back from intervening in the markets. It would also help considerably if some semblance of spending restraint was used, as well. Neither of those prospects appears likely in the next three and half years.
The downward correction in gold prices was broken earlier this month and prudent trading requires following the new trend: upward. The upside target from a week ago at $948 was met, exceeded, and today was defended (now becoming support). The $970 level becomes the next closest target, with the $1000 level the obvious ‘big number’ target. The chart looks increasingly like a nice, rounding bottom. Support comes in at $948, $935, and $922.
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 at tom@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 Thursday, 28 May 2009 | Digg This Article | Source: GoldSeek.com
