Dollar Rises On Rate Talk and Precious Metals Suffer | The Gold Forecast

Dollar Rises On Rate Talk and Precious Metals Suffer

May 9, 2016 - 5:20pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

We are currently flat with no active trades.

On last Thursday's show we mentioned an alternate strategy in which you would simply take your current protective stops to the market.

Traders that pulled profit on Thursday gained $20.00 on the trade ($2000 per contract), and pushed on the silver trade.

Subscriber that left the stop in place got out with a $10.00 profit on the trade ($1000 per contract), and took a small loss on silver

Gold Market Forecast

Mid last week we were long both gold and silver, when we began to notice a serious consolidation within the market, and more importantly a series of consecutive lower lows and lower highs on our daily charts.

That being said, it was my belief that we could in fact see the market drift lower, which triggered our alternative strategy of taking our protective stop to the market.

That call was to come into question on Friday when we saw gold rise approximately $10 on the day.

Clarification came like a thunderbolt today as we witnessed the entire precious metal complex under tremendous pressure.

On today's video report we will look at current levels of support in both gold and silver, and work to put our next strategy into play.

Traders should look for a potential low in gold at 1260, which is a 61% retracement of the most recent rally. As far as silver goes, we could see the precious white metal trade to 1660 before finding some support.

Trending Markets: Proper Action

We are currently flat with no active trades

Trending Markets Forecast

Absolutely a mixed bag in US equities markets today, with the Dow Jones industrials closing lower on the day and both the NASDAQ and Standard & Poor's indexes closing higher.

Crude oil traded lower on the day, and the dollar continues to find support, trading higher on the day against its basket of currencies.

Notable in the Standard & Poor's 500 is the fact that the entire trading range of the day was above the current 50-day moving average, and that can be construed as mildly bullish.

Sentiment Indicator: