The count continues.For the twelfth time in fourteen sessions, the August gold contract failed to close above the low-$940 range.From a purely technical perspective a move down to $894 cannot be ruled out. Though the US dollar index appears to be ready to roll over on the charts and take out the June 2 lows, sharp weakness in the stock markets today and rising unemployment underscore the deflationary pressure keeping gold from advancing.
Speculation about inflation may die down as it appears that many commodity markets simply do not have the strength to push prices higher at this moment.Crude oil is on the verge on putting a top on the charts if prices close below $66, and a pullback could send prices back towards $60-$58.Gasoline prices have already dropped 25 cents a gallon since early June and could see another drop in the mid $1.60 range.
It will be interesting to see how the US dollar moves compared to the stock markets as we head into the 2nd quarter earning reports season. If earnings are weaker than expected, a slide in stocks could help support the dollar, as seen previously.Unless the market receives some bullish surprises, look for a bearish bias to keep a lid on the market.
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
