Gold Chart of The Week

Each Week will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (September 23rd through September 27th)

After the FED decided not to taper their Bond Purchase Program last week, global markets were given a nice boost, only to give most of the rally back by this morning. Now with only a few trading days left in the month, we will rely on a parade of FED Members that speak throughout the week to decide whether or not Wednesday was a one-day rally or not. We will also have to keep an eye on headlines as the debate in Washington continues, which threatens a government shutdown.While it is a bit disappointing that there was little follow through after Wednesdays sharp spike in most markets, it is also encouraging for technical traders that are looking for price action to base trades from. Intraday charts of financial markets are ripe with very good opportunities to buy and sell, and should continue to be this way all week. We will be watching markets react to FED Members and headline news this week, but will rely heavily on technical price action for trade basis.

The hourly chart points out the December Gold Futures reaction to the FOMC announcement. It only took a few short minutes to see Gold prices spike well over $50 an ounce, then took a few days to practically give it all back. If the FED Members that speak this week provide timelines tapering that indicate a scale back in Bond Purchases before the end of the year, then we should see a continuation of this pressure on Gold prices. If the speeches show FED Members kicking the taper can into next year, we would expect buying to return to the Gold, but at a slower pace than last Wednesdays volatile move higher.

If you would like to discuss trading in the Futures and Futures Options markets with me, please feel free to call or email me directly. You can reach me directly at (888) 272-6926 or by email at [email protected].

Thank you for your interest,
Brian Booth
Senior Market Strategist
[email protected]

** There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data contained in this article was obtained from sources considered reliable. Their accuracy or completeness is not guaranteed. Information provided in this article is not to be deemed as an offer or solicitation with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this article will be the full responsibility of the person authorizing such transaction.

10 thoughts on “Gold Chart of The Week

  1. There are prediction of deep inflation in the future and aprpretiation of scarce dollars(lot of it willbe destroyed trogh debt destruction.May be but personally I believe that any trust into paper dollars will be destroyed as well and gold won´t lose significantly to other assets including paper money.The hard money most likelly start shine again.Some sort of the gold standard is comming,gold is nor dead. Martin

  2. At this time, (Day not over) Gold Day Bar threatens some ' Uppage',

    $1330 is my Target for the start of a potential up move. This would be my Short ' Buy-Stop'.

    I Remain in ' Day Trading Mode '.

  3. I´m in full agreement with Steve Star.The amo of BB is most likely runing short,sunday revaluation of gold is approaching.What about a wild guess-sumday 29th of december? Martin

  4. What interests me is how fast and how far gold jumped with just a little nervousness - makes me wonder what would happen in an instance of real calamity.

  5. The gross manipulation of precious metals will continue as long as the Fed acts to hold interest rates down and defend the dollar. Gold cannot be allowed to be seen as a viable alternative to the ongoing debasement of US currency. Massive naked shorts will continue to be used to manipulate the price of gold as long as the price is set in the paper markets and not physical markets. Those wishing to invest in precious metals should make sure they take possession, not hold paper certificates, because these will likely be worthless in the event of a COMEX default (coming).

    Note that the bullion banks have used the rigged declines in the paper price to escape their massive short positions and become long, unlike the SPECS who have done just the opposite. Those wishing to take delivery on their contracts are finding themselves unable to do so, they are forced to settle for cash. This shows that there is a crisis at hand. A great deal of gold has been stolen from allocated accounts and soon this will be exposed, probably at the same time COMEX implodes. At that point, you will see massive increases in the price of precious metals.

  6. while gold will get to multiples of it's $1924 high.............we have not seen the correction low, tho 1180$ was close.
    without a shock or increased money velocity, gold will continue to consolidate.

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