China Fever, Oil Swoon, Gold Finds Traction, Equities Upset | The Gold Forecast

China Fever, Oil Swoon, Gold Finds Traction, Equities Upset

August 11, 2015 - 4:56pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

Yesterday we issued a trade alert to buy both gold and silver

Maintain long gold @ 1104.50 Maintain stop @ 1089 OCO sell at 1128 OB

Maintain long silver @ 15.26 Maintain stop @ 14.95

Gold Market Forecast

Many analysts are wondering if last night’s move by the Chinese banks to devalue their currency was “one and done” or simply the first salvo. As we have noted on many occasions the economic scenario in China is far from perfect, and the net outcome of these actions could certainly have a dramatic influence on gold prices.

On today’s video report we will look at both short-term as well as longer-term resistance areas as they relate to our current trade and current exit strategy. We have suggested a strategy of placing an OCO (one cancels the other) order connected to our current stop, and today’s report will detail why we are focusing on this particular price point as a potential exit strategy.

Of course, longer-term real resistance does not come into play until (if and when) gold prices can effectively trade above 1156. This being the key 61% retracement level from gold’s ascension from $700 to above $1900 per ounce.

If China continues to devalue their currency the net result could be an influx of capital into U.S. debt as well as gold as a safe haven vehicle

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

Crude oil prices once again traded under dramatic pressure today, actually trading below $43 per barrel on an intraday basis.

Although closing off the lows of the day the equities markets were dramatically affected by China’s most recent move. One real question servicing traders' minds is whether this recent activity could lengthen the time until “lift off," the raising of interest rates by the Federal Reserve.

Both the US dollar and euro traded nominally higher on the day, in essence unchanged, as traders digest the most recent moves made by the Chinese government

Sentiment Indicator: