Gold Staggered By Stronger Dollar and Risk On Sentiment In Equities | The Gold Forecast

Gold Staggered By Stronger Dollar and Risk On Sentiment In Equities

June 21, 2016 - 5:02pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action
Yesterday we suggested taking profits at current market price (1290)  
Long gold @ 1245 out @ 1290 for a $45.00 dollar gain ($4500 per contract)
 
If you took stop to market and pulled profits last week, (our secondary strategy):
Long @ 1245 Out @ 1294 for a $49.00 gain (4900 per contract)
 
All Traders should stay sidelined
Gold Market Forecast

Even with dovish comments made by Janet Yellen today, the current belief that Britain will not leave the European Union plunged gold prices to their lowest point in the last few weeks.

Any premium that was baked into the current price of gold based upon the UK leaving the European Union has been taken out of current pricing models. From here until the vote on Thursday in Britain we could see prices drift lower.

However, just as gold prices have over-compensated for an exit by Britain from the European Union, we might be witnessing overcompensation for just the opposite. Although anything can happen between now and the vote, we will remain sidelined with no active trades until the dust settles and the results of the vote are in.

Trending Markets Forecast

Traders continue to define their trading activity based upon whether the UK will exit the European Union. As of this writing, analysts are putting the probability of an exit at about 25%.

The real facts are that until the vote comes in there is no certainty as to the outcome of the resolution being voted upon. With that in mind, our belief is that the most prudent action is no action at all and to remain sidelined with no active trades.

Sentiment Indicator: