Gold and U.S. Equities Continue Their Weeklong Rally | The Gold Forecast

Gold and U.S. Equities Continue Their Weeklong Rally

June 7, 2019 - 5:39pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action
Yesterday,June 6, we raised our stop from $1321.13 to $1328.13
Maintain Long August gold@ $1293.10
Maintain stop @ $1328.13
 
Thursday morning, May 30, we sent out this message -Trade Alert: buy August 2019 gold @ the market. Respectable move today in gold which is currently trading up $6.80 to $7.00, basis the August 2019 contract and fixed at $1293.10.
Gold Market Forecast
We remain bullish for gold on a long-term basis, however, at any moment we could see a short term pause in this rally.  On Wednesday gold traded with a higher low and day higher high than on Tuesday,  it was the extended high of $1349 that caught the attention of traders. Yesterdy,  gold traded to a higher low, but not a higher high. Today gold reach a NEW high price for 2019
 
Support for gold continues to be  attributed to statements by Federal Reserve Chairman Jerome Powell who alluded to the potential for rate reductions this year to continue the economic expansion. This coupled with Monday's statement by the president of the St. Louis Federal Reserve Bank, James Bullard is significant in that it illustrates real support for rate cuts if needed. Today's Labor deptment Jobs report came in well under expections. 175,000 new jobs were forecast and the actual number was only 75,000.
Sentiment Indicator:
Gold -> Bullish
Silver -> Bullish
S&P 500 -> Bullish
Bitcoin -> Neutral
Bitcoin fundamentals by Joseph M. Wagner II:

Bitcoin’s predicted speedy recovery is confirmed today on a daily candlestick chart. Viewing the markets from this format reveals a variant of a two day bullish reversal pattern simply called a ‘bullish kicking’. Although to truly fit the definition today's candle would not dip into the upper wick of the prior candle (Thursday). None the less as we had spoken to the point prior to this retracement’s occurrence, is that the back stepping would be rather shallow and short lived. Also noteworthy is the CME’s futures contracts are trading lower than anticipated with the recent succession of the CBOE’s single coin contract. However, looking at the bigger picture Daily volume and liquidity are up and have been steadily for months.

Thursday’s new positions were roughly equal to the old record daily Volume hit on November 20th, 2018 at approximately 12,500 contracts being bought and sold. Which was seemingly doomed from the start. In fact, both funds offered Bitcoin divertive contracts at seemingly the worst possible time (at the all-time apex at approx. $20,000).