Gold Closes Sharply Higher

TRADE ALERT: Cover Short August Gold, and remove stop when markets reopen following the holiday. 

_________________________________________________________________________________________

Just ahead of the July 4 holiday, gold pricing scored solid gains to close at $1,253.90. This is a gain of $12.20, based on the August Comex contract. These gains are partially attributable to a weaker U.S. dollar, which lost approximately half of a percent today and closed at 94.31. It is quite apparent that on a technical basis the U.S. dollar continues to have difficulties breaking above 95 on the index.

However, today’s gains in gold pricing were clearly dominated by buying which could easily be attributed to short covering and profit taking before the holiday, along with events which will occur at the end of this week.

On Thursday, the Federal Reserve will release the minutes from last month’s FOMC meeting, which will be followed by the Labor Department’s employment report for June on Friday.

Our target for this recent decline in gold prices has been at approximately $1,238 per ounce. This price point is based upon the lows achieved in December of last year. Although yesterday’s low came close to that target, today’s low of $1,238.80 hit our numbers precisely.

The strong comeback from those intraday lows suggests that we could, in fact, see an upside bounce in gold prices moving forward. It is for that reason that I am issuing a trade alert suggesting that all our subscribers cover our short positions when the market opens following the July 4 holiday. Depending on the price action after the holiday it might be an excellent point to reverse our stance and initiate a long trade.

Should such an opportunity present itself, we would look to play stops below 1,238, the current support level and lows from today’s trading activity.

Most importantly, we wish to thank all our subscribers for your loyalty and support. We extend our wishes for a joyous Fourth of July holiday to all those who reside in the United States and to our neighbors in the north celebrating Canada day this week.

As we spoke about yesterday, we are just completing the buildout of our new production facilities and studios and hope to be in full operation at the beginning of this week. Until then, we will continue with our daily letter and a shortened limited video report to accompany the letter.

Wishing you as always, good trading,