Oil Makes The World Go Round, Gold Finds Its Feet | The Gold Forecast

Oil Makes The World Go Round, Gold Finds Its Feet

August 10, 2015 - 4:49pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

Stop was hit today as gold prices moved above 1100. 

Short @ 1092 out @ 1108 (- $16.00)

We also issued a conditional trade alert in today's report: enter long on an effective close above 1100 in gold.

Place stop below 1089

Enter long silver

Stop below 14.95

Watch report for details !

Gold Market Forecast

For the first time in quite a while we have seen a very decent rally in the precious metals markets. That, coupled with a triple-digit advance in the equities markets and crude oil moving back above $45 per barrel, is of great interest.

As we mentioned over the last two weeks, and detailed last week, there was a real opportunity for a squeeze play in which we would see a fairly sizable round of short covering. Indeed, that is what we witnessed today as gold moved back above $1100 per ounce.

We are issuing a conditional trade alert to enter both gold and silver from the long side. The primary condition to this trade alert is an effective close above 1100 per ounce. Gold has met that criteria. For those implementing long positions we recommend protective stops just below 1089. Our upside target for this trade is roughly 1130. One strategy is to place an OCO (one cancels the other)  in which you place your stop at 1088 OCO sell at 1129.

We highly recommend that you view today’s video report for specific details on this trade alert.

Trending Markets: Proper Action

Maintain long dollar @ 97.67 Maintain stop below 96.25

Maintain short Euro @ 109.15 Maintain stop above 111.00

Trending Markets Forecast

A most interesting way to start this week with the Dow Jones industrial average closing up in triple digits, with a net gain of almost 250 points on the day. As we spoke about in our opening letter, crude oil finally has found some sort of potential bottom at $43 per barrel and has traded substantially higher on the day. Whether this is a flash in the pan or a key reversal in the market is something that we will be able to determine over the next few trading days.

The U.S. dollar continue to trade under moderate pressure, and the euro dollar gained strength as it did on Friday.

Sentiment Indicator: