Gold Continues to Build Base Above $1300
Despite the Federal Reserve’s lame attempts to continue controlling the markets through its now shattered communications strategy the price of Gold continues to limp towards the start of COMEX physical deliveries in October consolidating between $1300 and $1400 per ounce. This morning’s durable goods miss was significant and after some HFT churn the gold market stabilized near $1310 and has broken back above $1325. Silver, however, has not recovered the $22.00 level.
I expect there to be little movement in gold between now and the month’s end to keep pressure on COMEX longs thinking of standing for delivery come October 1st. As of Monday evening open interest for the October contract was just shy of 19,000 contracts. What is most surprising is that is has been rising as we end the month. Normally, contracts are rolled forward but with Gold pulling back towards $1300 there is obviously demand to grab physical metal now versus waiting until the December delivery period opens, which is always the biggest delivery month of the year.
For now it looks like Gold is building a base with higher lows on each correction. Last week’s dips below $1300 have not been repeated. Selling was arrested well above that level yesterday and this morning attack on the COMEX open saw a low of $1316, higher than Tuesday’s low of $1306. Buying is being uncovered at successively higher prices. This is bullish.
I’m watching for a weekly close above last week’s high near $1375. Clearing that level will set the market up for a challenge of $1435 in October.
Currency Articles - Jul 27, 2015 13:37 - 0 Comments
More In Currency Articles
Gold and Oil News - Oct 7, 2014 17:44 - 0 Comments
More In Gold and Oil News
- Gold Falls But Higher Prices May Be On The Horizon
- Gold Prices Spike Higher On Increased Israel Tension
Shares and Markets - May 1, 2014 10:50 - 0 Comments
More In Shares and Markets
- Glaxosmithkline Share Price Rebound Halts On Slower Sales
- Royal Mail Share Price Will Not Be Investigated