Powell Dampens Current Gold Rally | The Gold Forecast

Powell Dampens Current Gold Rally

June 25, 2019 - 6:16pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action
Maintain Long gold @ $1339.10. Maintain stop @ $1397.13
Yesterday, Monday June 24, we sent out a TRADE ALERT Move stop from $1379.13 to $1397.13
Gold Market Forecast

Interesting activity in the gold market today with gold reaching an intraday high of $1442 per ounce. However, statements made by Federal Reserve Chairman Jerome Powell dampened the rally and gold closed off of the highs achieved earlier in the day.

The net result was that gold gained $8.50 on the day however the candlestick that could be identified was a “doji” based on its tight range between the open and closing price, which was about 3 to 4 dollars. This could be indicating a potential top in the market or simply a point of consolidation. It will be the candlesticks that follow that will give us information necessary to answer that question.

Sentiment Indicator:
Gold -> Bullish
Silver -> Neutral
S&P 500 -> Neutral
Bitcoin -> Neutral
Bitcoin fundamentals by Joseph M. Wagner II:

Today’s candlestick in BTC futures on the CME a large green body with a higher high and a higher low confirms yesterday’s doji was not a sign of a correction or even consolidation. One significant feature of today’s action is that we are right at the 50% retracement ($11581) of the entire data set since the futures contract were offered and are currently trading at $11395.

Further acceptance is seen in the fact of The United States Commodity Futures Trading Commission (CFTC) has approved the application of Ledger LLC for designation as a contract market, according to an announcement published on June 25th allowing them to exchange BTC futures for settlement in real bitcoin. Plus the bigger news occurring earlier in June, institutional cryptocurrency platform Bakkt announced that it will begin testing its first product, physically-delivered bitcoin (BTC) futures on July 22nd.

Support in the futures markets sits at $10,000. Minor resistance rests at $11,775 with major resistance at $13,575 the .618 Fibonacci Retracement.