Gold Prices Struggle to Find Support Levels

June 11, 2019 - 6:17pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action
We are currently flat after taking profits yesterday. On opening weaknees, when gold was down $8.00, we took our stop to the market.. Long @ $1293.10 Out @ $1338.10 =  $45.00 per ounce, or $4500 per contract.
 
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 Sundaywe got the short term pause in this rally we have been waiting for..  
 
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 last  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. Last weeks Labor department Jobs report came in well under exceptions. 175,000 new jobs were forecast and the actual number was only 75,000, are supportive of rate cuts.
Sentiment Indicator:
Gold -> Neutral
Silver -> Bearish
S&P 500 -> Neutral
Bitcoin -> Bullish
Bitcoin fundamentals by Joseph M. Wagner II:

As we spoke about a few weeks prior Tether (USDT) a stablecoin fixed directly to the value of the U.S. dollar has held the record for daily trading volume for some time now and it is widely accepted that Tether’s Market cap has correlated to the price of Bitcoin. Recently it has been noticed that any spike in Tether’s market cap will bring about an upward spike in BTC pricing approximately one month after the spike in USDT Market cap. Tether’s market cap has been tied to Bitcoins price going all the way back to July of 2018, its drop in market cap back in November 2018 proceeded Bitcoin’s fall from $6,000 in December 2018. More recently USDT’s Market cap has been rising in a parabolic manner since April, the same timeframe of BTC’s recent parabolic rise. If this phenomenon (which has been cited as a reason that Bitcoin’s bear market ended in February) continues then there is reason to believe we will see another rally over the next few weeks that could take BTC to the $10,000 level. This is due to the fact that Tether just ‘minted’ another $150 million in digital coins this week. 

For now Bitcoin continues to trade in a narrow range between approximately $7500 and $8000 but if history repeats itself as it has over the last year then a rise above $9000 is to be expected within the next few weeks.