-- Posted Thursday, 25 June 2009 | Digg This Article
| | Source: GoldSeek.com
Aug Gold: Open= 932.0 High= 940.4 Low= 930.3 Last= 940.1 +5.7
The recent downtrend in gold is being tested. Today’s close above $933 gives bulls the momentum heading into the end of the week. It is possible that tomorrow brings about a round of short-covering ahead of the weekend due to prices breaking above resistance levels. The next upside objective for gold is to close back above $947. Gold bulls that have remained patient during this correction could test the long side of this market with some relatively tight stops, or with protective puts.
For the seventh straight session, the U.S. dollar index failed to move above the 81.00 level, closing lethargically today. What appeared to be something of a bottoming formation on the gold charts has now eroded into a sideways consolidation pattern, with the overall trend still being down.
With a bevy of legislation in front of the U.S. Congress, such as the cap-and-trade energy bill and health care reform, passage of either of those bills in their current forms could spell another round of heavy selling in the U.S. dollar. The healthcare reform bill will require massive amounts of new government spending, which will have to be borrowed, and the energy bill will cost taxpayers and business dearly with either jobs moving overseas or consumers facing higher prices. Neither of the bills encourages economic growth, and the markets will take note.
While inflation remains muted and deflation appears to have subsided for now, investors are looking at gold as a safe-haven. If the U.S. continues to spend its way into oblivion, then owning gold and other physical assets is the surest way to ride out a potential currency crisis due to a continued weakening of the dollar.
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, 25 June 2009 | Digg This Article | Source: GoldSeek.com
