Fear But Not Enough To Drive Haven Demand

February 11, 2015 - 4:40pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

Our protective sell stop was hit today when gold prices went to 1227

We are flat with no open positions in either gold or silver

Long gold @ 1240 our @ 1227  -$13.00 on trade ($1300 per 100 oz contract)

Gold Market Forecast

Gold today traded dramatically lower, actually breaking to a four-week low on the day. More importantly gold prices broke below the 61% retracement of this most recent rally when prices went below 1221 per ounce. This Fibonacci retracement is drawn from the most recent rally when gold ran from 1168 up to 1308. This puts gold prices at a crossroads, and a very critical price point on a technical basis. Obviously the bullish models that we have looked at in the past will need to be addressed, which is exactly what we will do on today’s report.

Interestingly. the fundamentals that are currently at play historically have moved gold prices higher, as increased uncertainty in the euro-zone and Ukraine continue to dominate the news. It seems as though any safe haven effect has moved into the dollar and not so much into gold. Whether gold prices can muster any support at this price point will be key in our strategy moving forward.

Sentiment Indicator: