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.
About Tom Luongo
Tom is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.
Twitter •
Most Popular Content
- Gold Flying and Making New All Time Highs
- Gold Prices Slip Ahead of Anticipated Economic Data
- Oil Prices Surge From Lows Amid Mixed Global Signals
- U.S. Stock Indices: A Dance Between Optimism and Fear
- Gold Prices Dance with CPI Data and the Fed
- Oil Prices Surge Amid Record Demand and Supply Tightening
- Gold Steady As US Dollar Index Tries to Make Gains
- Some Respite for Crude Oil within Bear Trend
Currency Articles - May 22, 2019 15:21 - 0 Comments
The Pound is in Freefall – When Will It Stop?
More In Currency Articles
- GBP Gets Ready for an Unpredictable Day with Meaningful Vote 2
- British Pound Stays Strong Whilst The Dollar Remains Weak
Gold and Oil News - Mar 30, 2024 10:37 - 0 Comments
Gold Flying and Making New All Time Highs
More In Gold and Oil News
- Gold Prices Slip Ahead of Anticipated Economic Data
- Oil Prices Surge From Lows Amid Mixed Global Signals