The Next Sound You Hear...

July 14, 2014 - 4:08pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

Friday morning we sent out a special trade alert raising stops on our current long positions in both gold and silver.

Those recommended stops and positions were:

Maintain current long position in gold at 1303
Maintain current stop below 1329

Maintain current long position in silver at 20.60
Maintain current stop below $21 per ounce

We were stopped out of both our silver and gold positions

Long gold at 1303, out at 1327 for a profit of $24
Long silver at 20.60, out at 20.90 for a profit of $.30

 

Gold Market Forecast

Gold and silver traders witnessed a meltdown today. As trading activity began in Australia approximately 22 hours ago, both gold and silver opened slightly lower, trading off just a few dollars. That would dramatically change once trading opened in London and continued its dramatic slide into New York's open.

Gold gave up roughly 38% of its most recent $100 rally, and does appear at least for the short-term to have found support roughly at 1305.

Equities traded dramatically higher today putting additional pressure on the precious metals markets. However, the meltdown we witnessed today I believe was due to thin volume and technical selling triggering stops and moving the market substantially lower.

Whether or not gold finds support at 1305 will be a critical element in our upcoming forecast and will determine short-term where the market is going. Inasmuch as we have seen a dramatic selloff, we were fortunate in that we were able to liquidate our positions at a much higher price, and avoid being stung by today's selloff. 

Sentiment Indicator: