Gold Trades Under Pressure in Light of a Better Than Expected GDP Report | The Gold Forecast

Gold Trades Under Pressure in Light of a Better Than Expected GDP Report

February 28, 2019 - 6:06pm

 by Gary Wagner

Last night’s announcement that the U.S.-North Korea denuclearize talks, had for the most part come to a unexpected ending after both leaders failed to reach an agreement. This summit or negotiation was an effort by the United States and allies to curb or end North Korea’s objective to become a nuclear power.

According to President Trump these talks hit a stalemate when North Korea asked for the current sanctions to be lifted in their entirety. The North Korean leader pledged to dismantle the North’s Yongbyon nuclear complex. This complex contains a reactor and plutonium reprocessing plant.

Trump’s responded at a news conference where he said North Korea was “willing to denuke a large portion of the areas we wanted, but we couldn’t give up all of the sanctions for that.”

According to the president “current sanctions on North Korea will remain in place, but he said that the country has “tremendous potential”, calling Kim “quite a guy and quite a character.”

That news caused gold to run to its high in trading last night of $1329.90.

Bullish Sentiment for Gold Shifts Quickly After the Release of the U.S. GDP

MarketWatch released a poll of economists which forecasted a tepid 1.9% growth rate. However, the GDP numbers were strong indicating that there was a 2.6% growth rate in the fourth quarter, coming in well above economists’ expectations.

According to MarketWatch because the GDP numbers were better than expected, Scotiabank Economics advised clients, “to continue to downplay market pricing for federal reserve interest rate cuts,” Scotiabank Economics said it’s “forecast remains pointed towards a return to modest tightening later this year.”

Of course, such a move, if correct, would have a bullish impact on the dollar as interest rates move higher and a bearish effect on the safe haven metal gold.

Currently gold futures are trading under pressure down seven dollars on the day, with April futures currently fixed at $1314.20.

Our technical studies indicate that there is minor support at $1312 per ounce, and major support at $1300. These studies also indicate that currently resistance resides at $1331, with major resistance at $1350. Both of these price points are former highs of the year.

Wishing you as always, good trading,

Gary S. Wagner - Executive Producer

This report is now free and publicly available to everyone

Gold Forecast: Proper Action

This morning we went long. See image below:

Closed trades:

GLD: On April 12th our stop was hit at $162. We went long at 162.82. Trade resulted in 0.82 loss per share.

Futures: Gold (GC J21) in at 1722.80. Out at at $1728 for a profit of $520.00- per Comex contract.
Forex: XAUUSD in at 1724.40. Out at at $1729 for a profit of $4.60- per ounce.
ETF's: GLD in at 161.55. Out at at $161.90 for a profit of $0.35- per share

SLV in at $24.24. Stop hit at $23.50, for a loss of $1.05 per share
May 2021 (SI K21) in at $26.26. Stop hit at $25.3 for a loss of $0.96 ounce
Forex silver in at $26.17. Stop hit at $25,30 or a loss of $0.87 per ounce

On February 18 we entered a long April Platinum trade. In at $1282. Our stop was hit today (02/26/21) @ at $1217.00
SILVER FUTURES MARCH: Entry at $27.36, and then closed the trade later @ $27.45.
XAGUSD: Entry at $27.26,, our stop was hit at $27.39

We closed our positions in SLV:
First leg SLV: @ 22.95 .out at @ $24.99
Second leg SLV @ 24.60. out at @ $24.99

On Thursday February 4 stops were hit on our long GLD ETF. We entered at 172.14. Our stop was hit at $168.29 (the open on Thursday) for a $3.85 loss per share.

GOLD FUTURES APRIL: Entry at 1845 - 1859 . Stop hit at 1813 - average loss $3900 per contract
XAUSUD: Entry at 1845 - 1857 . Stop hit at 1813 - average loss of $38 per oz
SILVER FUTURES MARCH: Entry at 25.42 - 25.46 . Stop hit at 24.11 - average loss $6650 per contract
XAGUSD: Entry at 25.33 - 25.40 - Stop hit at 24.11 - average loss $1.3 per oz
long February gold @ $1890.00 and stop hit @ $1902.20, for a profit of $1202.00 per contract
long Forex gold @ $1886.00 and stop hit @ $1898 for a profit of $12.00 per OZ
long March silver @ $26.31 and stop hit @ $26.41 for a profit of $500.00 per contract
long GLD @ $177.26 and stop hit @ $178.00 for a profit of $0.71 per share
long SLV @ $24.67 and stop hit @ 25.00 for a profit of $0.33 per share
long February Gold Futures at $1860-$1866 and stop hit at at $1869. Average profit $600 per contract
long XAUUSD at $1856-$1862 and stop hit at $1866. Average profit $6
long March Silver Futures at $25.16 - $25.25 and stop hit at $25.30. Average profit $450 per contract
long GLD @ $174.12 and stop hit at $175.78 for a profit of $1.66 per share
long GLD @ $174.12 and stop hit at $175.78 for a profit of $1.66 per share
long February Gold Futures at $1830 -$1843 and out at $1850 for a profit of $700 to $2000.00 per contract
long XAUUSD at $1841 and out at $1850 for a profit of $90.00 per mini 10 oz contract
long March Silver Futures at $24.29 and out @ $24.40 for a profit of $550.00 per comex contract
long GLD @ 1$71.50 and out @ $173.00 for a profit of $1.50 per share
long SLV @ $22.30 and out @ $22.50 for a profit of $0.20 per share
Long December gold at $1899. Stop hit at $1918, for a $1900 profit
Long forex gold at $1896.00. Stop hit at $1912, for a $1600 profit
Long December silver at $24.21. Stop hit at $25.07 for a $4300 profit
Long GLD at $180.46 and stop hit at $176.42 for a loss of $4.04 per share
Long SLV at $23.23 and stop at $22.78 for a loss of $0.40 per share
Long December Gold Futures at $1926 and stop hit at $1907.30 for a loss of $18.70 per ounce
Long Forex Gold at $1922 and stop hit at $1903 for a loss of $19.00 per ounce
Long December Silver Futures at $25.13 and stop hit at $24.73 for a loss of $0.40 per ounce
Long December gold at $1890, out at $1909.30 for a profit of $1,930.00
Long December silver at $23.95, out at $24.50 for a profit of $2,750.00
Long Forex gold at $1883.68, out $1907 for a profit of $23.32 per ounce
Long GLD ETF at $178.03, out at $179.80 for a profit of $1.77 per share
Long SLV ETF at $22.66, out at $22.03 for a loss of $0.63 per share

Gold Market Forecast

On today's report we will look at two different stratrgies to exit this trade.

Market Overview

Economic Calendar