Gold Rises On Extended Dollar Weakness While Oil Slides | The Gold Forecast

Gold Rises On Extended Dollar Weakness While Oil Slides

August 10, 2016 - 5:15pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

Yesterday afternoon (Hawaii) we issued a Trade Alert – Buy Gold @ the market with a stop below 1335 (this basis Dec Comex contract)

Maintain long gold @ 1355 (1348 spot)

Maintain stop below 1335 (Dec Comex) (1329 spot)

Gold Market Forecast

Yesterday we issued a buy recommendation in gold. Over the last few days we have noticed a pattern unfolding called a Three River Morning Star.

Extremely noteworthy is the fact that the low of this pattern group (the star) occurred at 1335, which is precisely a 61% retracement of the last rally. Yesterday morning we saw that the initial pattern was complete. However, it still lacked a confirming candle.

The confirming candle occurred in the afternoon session (overseas), in which gold began to trade dramatically higher. On today's video report we will detail the trade as well as the rationale for why we placed our stop where we did, and most importantly our upside target or exit strategy.

Trending Markets Forecast

Markets will trade to a price point and equilibrium that they realistically belong at. This is regardless of intervention whether it be by a central bank or OPEC.

Statements made earlier this week by the oil cartel sent prices nominally higher, but more importantly, higher for a very short period of time. Over the last couple of days we have seen the price of crude once again begin to drop dramatically, moving to its natural equilibrium, based upon supply and demand economics.

US equities continue to trade near record highs, yet they do this with extreme headwinds and a bias to the downside.

The US dollar continued under pressure today, losing about one half percent on the day. Our current model indicates that the US dollar could continue to trade under pressure.

Sentiment Indicator: