Brexit Panic Helps Gold But Rising Dollar Hampers Huge Gain

June 27, 2016 - 5:26pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

Yesterday we sent out a special trade alert recommending that our subscribers initiate a long gold position.

Maintain your current long gold at 1332.

Maintain your current stop below 1314

 

Gold Market Forecast

There is no doubt that the passing of the referendum last week in the UK has set many wheels in motion. The wheel of uncertainty is absolutely forefront in traders minds.

As such we are seeing a continuation of some major market moves that began last week, such as lower US equities markets, higher US dollar, and higher gold prices. One must realize that these most recent gains in gold have been tempered by a tremendously strong US dollar.

So when we look at the net change of gold today which is currently trading at 1324, the eight-dollar gain we are reporting factors in an $11.60 worth of US dollar strength. If the dollar had remained unchanged today, normal trading would've taken gold prices up $20, (meaning we would not be subtracting that 11.60 from the overall gain). 

Trending Markets Forecast

The continuing carnage in US as well as European equities is still fully in play.

The British pound of course has taken the greatest beating of any of the currencies, and it is that currency that we will take a detailed look at today.

Sentiment Indicator: