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Daily Gold Update - 04.12.12

By Matthew Bradbard | Tue, 04 December 2012 20:10 | 0

I had previously predicted the gold market to correct and to date the market is cooperating trading lower by approximately $55/ounce in the last 2 weeks. Perhaps a bigger development is a trade under that psychological $1700 level and as one can see on the chart above we are probing the 100 day MA; identified by the red line.  Also February futures may be breaching a trend line that has held since midsummer.

Daily Gold Update - 04.12.12

There is plenty of Central Bank activity as the RBA cut rates to 3.0% today while the BoC left rates alone at 1.0%. Still on the docket this week we have an ECB meeting and the BoE not to mention a jobs number to round out the week. Why I bring this up is any surprise could cause increased volatility. My stance remains the same more depreciation in metals as my target in gold remains a trade under $1670 and as for silver a trade closer to $31/ounce. The 100 day MA in March comes in at $31.68.

My favored play in both metals is back ratio spreads. Those braver than I could have short futures positions but I would hedge them off with the purchase of call options or the sale of put options. Once we get the anticipated washout if it plays out I am eager to be a buyer for clients from lower levels…stay tuned.

Traders out there should contact me to get a game plan on the next long entry as I view it as an exceptional longer term swing trade opportunity.

To discuss in more detail this chart or any other you can reach me at:

mbradbard@rcmam.com or 954-929-9997

Risk Disclaimer: The opinions contained herein are for general information only and are not intended to provide specific investment advice or recommendations and are not tailored to any specific’s investor’s needs or investment goals.  You should fully understand the risks associated with trading futures, options and retail off-exchange foreign currency transactions (“Forex”) before making any trades. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change without notice.  Past performance is not necessarily indicative of future results.

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