Video-July-23-2013-Archives-Daily-Show
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Gold Wins In Afternoon Trading Much of the day, starting in Asia and Australia and moving west around the globe, gold was in a seesaw battle with those seeking to lock in profits through sell offs battling those who bought on those dips. Eventually, as afternoon trading progressed in New York, the advocates of this mini-bull won out. Silver, however, succumbed to the pressure - understandable enough since larger doubts still haunt the gray metal's value quotient.
Gold is up around $12.50, or almost 1% on the day. This should be attributed to traders finally homing in on Fed Chairman Bernanke's statements last week and continuing mixed news in the economies of the U.S. and other parts of the world.
Gold has climbed 13 percent from a 34-month low of $1179 on June 28 as physical demand increased following the spring slump. Possibly even more telling is that yesterday futures rumbled ahead 3.3 percent, the most in 12 months, on speculation that the Fed will not taper QE3 stimulus soon. (As if there really had been a question!) Yet there are the usual suspects flogging the dead horse about how wonderful the economy is in the U.S.
"Medium term, we expect that gold prices will decline further given our U.S. economists' forecast for improving economic activity and a less accommodative monetary policy stance," Goldman Sachs Group Inc. said yesterday in a general report about financial activities across a wide spectrum.
There are other winds blowing about the gold trading space, though. A general benchmark cost that has been in use for a while says that the price to extract and refine an ounce of gold stands right around $1050 per ounce. More and more reports are beginning to tout that cost as being at least $1300 and in some cases, the cost of $1400 is being cited. Miners and their affiliated industries are now more often choosing to leave the ore in the ground and take certain write-offs in order not to keep up such a losing proposition. For, if you can't sell at a 10 to 15% premium on the open physical markets, why bother digging in the first place?
Another current today was the continuing weakness in manufacturing in July, a turnaround down from June. The performance of manufacturers in the upper Southeast and mid-Atlantic softened radically in July, the Richmond Federal Reserve said Tuesday. The central bank branch's index of manufacturing conditions sank to -11 from 7 in June, as new orders and shipments fell sharply.
The negative reading of the index stopped a rally in U.S. equities markets dead in its tracks. The DJ Industrials index lost almost all of its gains but recovered with a very small gain at end of session. The Richmond Fed's new orders index dropped to -15 from 9 and shipments plunged 26 points to -15. The gauge for employment remained at zero for the second straight month.
The employment stat is of great interest to precious traders since one of the FOMC's major criteria concerning the nature and duration of QE is U.S. employment. The uncertainty in equities also would push some money into gold as a safe haven play.
Wishing you as always good trading,
Gary S. WagnerExecutive ProducerMarket Forecast:On a technical basis we witnessed a dramatic but strong recovery in gold following the close of trading in New York. Gold had been trading in essence unchanged to an intraday low off $8.00 dollars on the day as it traded in overnight trading.. We have seen gold trade through various resistance points almost unimpeded it moved to its intraday high of approximately 1350, a number is significant. As you will see in today’s video when we look at a Fibonacci extension of our minor count, wave one, 1350 is precisely 161% extension of wave one. With that in mind today’s program will cover two different exit strategies that should allow you to maximize profit to our current trade. Video archives:http://thegoldforecast.com/video/april-2013-archives-daily-shows http://thegoldforecast.com/video/may-2013-archives-daily-shows
Proper Action: Maintain Long gold @ 1285 and raise stop to below 1320
No current position in silver .
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Gary S. Wagner - Executive Producer