Commodities | Aug 08 2013
In the absence of any more geopolitical news concerning Al-Qaeda, Iran and a weaker US equity market it seems as if Gold once again has run out of friends. Although we continue to support the metal trading higher we feel that we are info a bit of a correction. It seems that even a weaker USD is not supporting dips and although physical buying is still at record levels the weight of selling primarily from the ETF market is having its way with the metal. As it stands a break through US1271 opens the way for a move through to US1230 and maybe even a test of the lows again. Ouch!
Last week we mentioned that we would be happy to sit on the sidelines with our long positions and patiently wait. This week we are reducing the positions as we have broken back below the break out level of US1330 then US1300. Which is a bearish sign.
Chart Point – Gold:
Technically, we have just run out of steam. The very fact that it failed to push higher suggests a test to the down side. Momentum indicators look weak, which also suggests further losses.
.jpg)
This report is not, and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, products, securities or investments. This report does not, and should not be construed as acting to, sponsor, advocate, endorse or promote products or any other products, securities or investments. This report does not purport to make any recommendations or provide any investment or other advice with respect to the purchase, sale or other disposition of products, securities or investments, including, without limitation, any advice to the effect that any related transaction is appropriate for any investment objective or financial situation of a prospective investor. A decision to invest in securities or investments should not be made in reliance on any of the statements in this report. Before making any investment decision, prospective investors should seek advice from their financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.