Gold Futures-- Gold futures in New York sold off from early session highs as the ECB lowered interest rates sending the dollar sharply higher against the foreign currencies and especially the Euro currency down about 80 points but at one point during the day was down about 230 points rallying towards the closing bell sending gold down $12 at 1,305 and breaking 1,300 earlier in the day trading as low as 1,296 an ounce continuing its recent bearish trend especially if the U.S dollar continues to move to the upside. I am bearish the U.S dollar due to government policies which should continue to pressure the U.S dollar and I still recommend selling the U.S dollar especially on spike up days like we saw today because in the long run with the U.S continuing to print $1 trillion every year making any reasonable rally unsustainable. Gold is trading below its 20 and 100 day moving average hitting a 3 week low basically trading between 1,251 - 1,361 in the last 7 weeks as money has been flowing into the stock market , however today the stock market was sharply lower but money didnt flow into the precious metals while 1,250 is possible in coming weeks or possible days but if you think longer-term take advantage of the situation and think longer term over the course of time buying gold on severe weakness will pay you off in my opinion while prices are in a bottoming pattern.
Posted on: Fri, 08 Nov 2013 16:18:23 +0000
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