Gold prices managed to find some support over the past four sessions around the $910 level on the charts, borrowing most of that support from the equity markets.Since the beginning of June until this week gold lost 7.6%, while the S&P lost 7.0%.During that same time frame, the U.S. dollar is up slightly less than 1.0%, making it is a safe assumption to conclude that currently, gold is linked to the outlook on economic growth.
Short-term bias in gold is positive, as the S&P closed above its 10-day moving average yesterday and is challenging the 50-day moving average in today’s session.Gold managed to find support today off the positive action in equities, closing above the 10-day moving average.The chart has a big range, between $924 and $940 that prices must navigate through if the longer-term picture is to turn higher.
Fundamentally, gold needs economic sentiment to improve again and a late earnings report by Intel is helping after hours gains in the S&P. The monthly PPI data was bullish on its face, with a larger than expected increase, but the details are a bit more muddled as rising gasoline prices had more of an impact than actual improvement in discretionary spending. The market needs to keep seeing better than expected earnings figures in order to avert more bearish sentiment. Congress is currently working on a health-care bill than would impose major tax increases on the top taxpayers in this nation, along with fines and penalties for individuals and companies to coerce them into buying health-care insurance. This cannot be good for the country and for business.
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.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC 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, Gold Seek LLC,
is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.
