Dollar Strength Accounts for Majority of Gold Weakness Today | The Gold Forecast

Dollar Strength Accounts for Majority of Gold Weakness Today

July 16, 2019 - 5:57pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

We are currently flat with no active trades in gold or silver.

Today our stop was hit on our long gold trade. We entered a long position at $1416.30, and our stop was hit at $1409.13 for a loss of $7.17 per ounce. This resulted in a loss of $717 per Comex contract.

Gold Market Forecast

The key to today’s trading range in gold was definitively dollar strength. The selling pressure that was a direct result of traders bidding the precious metal lower was nominal or fractional in the futures markets. Long-term we are still extremely bullish on gold and looking forward to retest the recent highs of $1442 per ounce. However, as we approach the apex of the compression triangle, we identified it is possible that when it breaks it will break to the downside rather than the upside. That being said the most prudent move at this point is patience and a neutral position in gold until we see how it reacts at the apex of the triangle.

Sentiment Indicator:
Gold -> Neutral
Silver -> Bullish
S&P 500 -> Neutral
Bitcoin -> Bearish
Bitcoin fundamentals by Joseph M. Wagner II:

BTC saw a steep decline in pricing today and as of 3:30 PM EDT is trading at $9,600 in the spot markets and $9,660 in futures on the CME. Today’s dramatic drop of well over 10% reiterating the denouncement by U.S. government officials such as Steve Mnuchin and Donald Trump late last week and earlier this week are continuing to weigh heavy on the world’s largest digital asset.

Last week on the 8th of July we had stated that the line in the sand was at $11,500 and that if pricing fell below this key level further declines were to be expected. In fact a further decline to $8,500 is not at all far away and the re-testing of $6,300 - $6800 seems more and more likely although we have evidence that if and when pricing drops to these levels there should be a bounce back to higher pricing.