-- Posted Tuesday, 15 September 2009 | Digg This Article
| | Source: GoldSeek.com
Dec Gold: Open= 1000.9 High= 1011.4 Low= 993.0 Last= 1009.0 +7.9
December Gold futures floundered overnight, unable to move above the $1,000 level as the U.S. dollar found some support. Stocks began to strengthen about an hour after the open and helped pull gold higher into the close today. For now though, gold needs stocks to move higher. The better prospects are for growth, the more potential for inflation. The Fed has signaled that it is unwilling to raise rates in the near term, and by all accounts that means not before the second quarter of 2010.
There are bears who think that because gold has twice failed to successfully breach and defend the $1,000 mark, the market will fail again at this level. Typically though, triple bottoms and triple tops do not hold. The first time gold failed after running above $1,000, in 2008, the market dropped over $300 an ounce in the ensuing months. In 2009, the market again reached $1,000 but this time fell only $130 an ounce before beginning to trade in a large, triangle-type consolidation pattern.
Gold has now traded above $980 five times in the past two years and one gets a sense that prices are roiling and simmering at this lofty level, and occasionally the lid pops and clatters and it pushes past $1,000. Instead of the Federal Reserve backing off the temperature on the stove, the monetary base expands, more debt is accumulated, and it appears that unless fiscal restraint is returned to Washington, gold prices will boil over and reach much beyond the $1,000 level.
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
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tom@altavest.com
www.altavest.com
-- Posted Tuesday, 15 September 2009 | Digg This Article | Source: GoldSeek.com
