Commodity markets proved vulnerable today to worries about the economy.It appears that many markets have rallied hard over the past few months on the belief that the economy was turning a corner. But over the past week or so, doubt about such a recovery has crept into the market.‘Green shoots’ have morphed into ‘weeds’ and a bit of healthy uncertainty has been injected back into the market. The US dollar is finding a bit of support in the worries of some traders that the global economy is still weak-kneed. That bit of apprehension has halted the slide in the US dollar, knocking back the inflation theme in a lot of markets.
Traders that want to be simply long of gold futures ought to wait for some short of washout low in the low $900 range as proof that buyers are stepping back into the market. If predictions about gold being priced at $1,500 or higher turn out to be true, then allowing the market to prove its strength is a wise course.Take one’s cue from the US dollar and trade inversely to the direction it breaks out of its current consolidation pattern. The ‘right’ position is the one that goes with the trend, whether it is up, down, or sideways.
With the FOMC meeting this week, traders will have some fresh news to digest.This is also a busy week in terms of debt auctions and it shall be seen whether the Treasury can attract sufficient demand without paying higher rates, or without the Fed stepping in to mop up any shortfalls.
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.
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