Gold Chart of the Week

Each week Longleaftrading.com 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 (November 26 through November 30)

After a strong finish last week in most major global markets, we begin this week flat after the festivities.

Following the Thanksgiving Holiday in the United States, traders were lined up to buy anything that they could get their hands on during Friday’s shortened trading day. It seemed that markets were still reacting from news earlier in the week, and probably taking advantage of the light volume opportunity.

Throughout the shortened week, markets like Gold were moving sideways to higher following news in the United States that Democrats and Republicans were enthusiastic about the upcoming “Fiscal Cliff” negotiations. Across the pond, European news suggested that while no final decisions were made regarding Greece yet, a good old fashioned can-kicking would suffice. The Eurogroup/IMF Meeting will continue today to decide on Greek Debt and the next tranche of cash. Prior to the meeting, it was reported that “considerable progress” has been made. Apparently, these delayed decisions were enough for investors like George Soros and John Paulson to report they had added to their already hefty long Gold positions.

This week is littered with reports from Europe and the United States, but it is expected that all eyes will be on the Eurogroup/IMF decision on Greece as well as any news from lawmakers in the United States as they return from the Holiday Break to discuss the month leading up to the “Fiscal Cliff”. Many of the futures markets including December Metals will also see first notice date at the end of this week.

It should come as no surprise that the December Gold Futures begin the week hovering around $1750 and ounce. I have made mention many times before that Gold usually tends to target prices in $25 increments on the way up. You can see on the daily chart provided that since filling the gap on the chart on November 2^nd (arrow 1), the futures have been in a gradual uptrend. Prices targeted the upper end of the recent trend in Fridays rally (arrow 2) before profit taking began. As long as prices do not close below the support trendline on the daily chart around $1725, the market is still considered in an uptrend.

Traders will likely look for Gold to retest Fridays high early this week and if the market can close above resistance, it will first target $1775 an ounce fairly quickly. Not only is this price $25 above todays price, it is also in line with a few chart highs from late last year and in the early months of this year. Ultimately, Gold Bulls would like to see the December Futures run to $1800 before first notice date on Friday. The range that is shown on the chart (diagonal blue lines) has defined key levels for this week’s trade. While the range is narrowing, it is should give plenty of opportunities for day and swing traders. Plan to be ever mindful of news this week out of Europe regarding Greece and be cautious of Fridays first notice date if you plan to trade December Gold Futures. Next week the focus will turn to the February Futures contract.

Good luck this week traders. Please remember to feel free to contact me directly if you would like to discuss this report, or if you would like to discuss any other Futures Markets. While the Gold is showing a very good opportunity, there is a renewed interest in markets sectors like the Energies (crude and natural gas) as well as the Grains (corn, wheat and beans). You can reach me directly by phone at (888) 272-6926 or by email at

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Thank you for your interest,
Brian Booth
Senior Market Strategist


bb****@lo*************.com












888.272.6926