Powell’s Maiden Voyage | The Gold Forecast

Powell’s Maiden Voyage

February 26, 2018 - 5:44pm

 by Gary Wagner

Although trading well off of highs achieved earlier in the trading session, gold is moderately higher as traders await Jerome Powell’s first testimony to the House and Senate committees this week.

As of 3:45 PM Eastern standard time, gold futures (April Comex contract) are trading up $4.50 (+0.34%) at $1,334 80. Gold traded to $1,342.90 overseas last night but has softened as a strong risk-on environment emerged in U.S. equities today.

With 15 minutes left in the trading day, the Dow Jones Industrial Average is currently up +1.45%, presently fixed at 24,680 with a net gain of 370 points. Along with the Dow, both the NASDAQ composite and Standard & Poor’s 500 are up over a full percent on the day.

Even with these substantial gains in U.S. equities, gold pricing is holding up rather well in anticipation of testimony to be given this week by the recently appointed Chairman of the Federal Reserve, Jerome Powell.

Beginning tomorrow, Powell will speak to the U.S. House of Representatives, followed by a trip to the U.S. Senate on Thursday.

In an interview with MarketWatch Jeff Wright, chief investment officer at Wolfpack Capital stated that he believes that today’s higher pricing in gold is “attributed to ‘positioning’ ahead of Federal Reserve Chairman Jerome Powell’s first testimony before congressional committees on Tuesday and Wednesday this week.

The market is anticipating three interest rate hikes for the year and clues will be sought to either confirm this number. If Powell ‘is like his predecessors, he will temper his language and give away little on this topic so not to be boxed in either way later in the year’.”

Our technical studies indicate current support levels in gold reside at $1,322, the 50-day moving average, with major support at $1310. Minor resistance resides at $1,335 which is the 23% retracement, with major resistance just above $1360 per ounce which is the most recent high achieved in gold which occurred last week.

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 sent out a Trade Alert:

Buy April Gold @ market (current 1334.8 + $4.50)

Place stop @ $1315

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

With the upcoming testimonial tomorrow by the new chairman of the Federal Reserve we have positioned ourselves to take advantage any upside spike in gold pricing. Recent price moves indicate a high probability that gold has returned to a bullish stance.

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