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 - Dec 2, 2015 11:35 - 0 Comments
More In Currency Articles
- GBP Rate Higher As Retail Sales Outperform Then Loses Ground
- Unemployment Level Suggests UK Is Ready For Rate Hike But Speculation Still Says No
Gold and Oil News - Jan 12, 2017 12:05 - 0 Comments
More In Gold and Oil News
- Oil Prices: How Much Further Will They Let This Slide?
- Gold Prices and Where Next At This Resistance?
Shares and Markets - Feb 20, 2017 16:03 - 0 Comments
More In Shares and Markets
- Can The FTSE Head Higher? BP, Fresnillo, and Bank Index Could Help Decide
- FTSE 100 and Dow Jones: Can They Head Higher This Year?