Video-June-12-2013-Archives-Daily-Show
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A Return To Order
The equities and other markets returned to some semblance of order today, with equities worldwide wrong out by traders. Japan's Nisei index took a particularly hard hit, due no doubt to yesterday's announcement that the Bank of Japan will not increase stimulus, nor will it commit to an open-ended execution of quantitative easing a la the U.S. Fed.
Even Europe showed some signs of growth, its industrial index rising for the third straight month.e
All this added up to a weaker dollar and bit of slight inclination toward a risk-on tenor in precious markets. This would seem to indicate that faith is being lost in equities, although that is not a confirmed trend.
Bond yields are continuing to rise as face prices fall, another indicator that bond investors have become a little more dubious of the risk there.
The overall contentiousness in the gold market seems to be hovering around a quiet battle between "paper" gold (ETFs and the like) and interest in physical gold. However, India has done its best to curtail appetite in that country, and the rupee along with other Asian currencies have faltered, which will make buying gold in those countries all the more difficult. Prices having risen to within striking distance of the 1400 range does not help second and third world buyers of the precious yellow metal.
As we have been advising, on the fundamentals front, gold traders should be watching august futures contracts closely as they are a modest shadow of what spot prices may become.
Wishing you as always good trading,
Gary S. Wagner - Executive ProducerMarket Forecast:Although gold has been range bound we have been looking at to outside influences which have been directly affecting gold prices. Those two respectively are the equities markets and the US dollar. Today weakness in the US dollar lent support and strength and helped propel gold prices up almost 1% on the day or $11 higher per ounce. Yesterday we outlined specific support which we felt was significant at 1360 per ounce. We based that number upon a 76% retracement of gold’s move from a low of 1322 1487. It seems as though at least on a short-term basis that that level of support has held. Resistance is still earmarked at 1385, 1403 with significant resistance at 1424. After making a significant upside move to an intraday high of 1395 gold has found resistance just below 1400 per ounce. I would still look to be a seller of gold above 1400 paying close attention to its recent intraday high above 1420 and a buyer of gold between 1360 and 1380. Video archives:http://thegoldforecast.com/video/april-2013-archives-daily-shows http://thegoldforecast.com/video/may-2013-archives-daily-shows
Market Sentiment: Bearish, Range bound sideways market. Support at 1360 resistance at 1403 then 1424
From the week of 06.07. 2013 COT LINK See previous weeks in Historical Commitments of Traders Reports. |
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Gary S. Wagner - Executive Producer