We’ve been long term bulls and traded gold since the Winnipeg Exchange was the only North American market available for gold futures contracts and we hovered over the Dow Jones news wire waiting for the London P.M. fix each morning. This was before Americans were once again permitted to own gold; before Comex and the IMM fought for supremacy in the U.S. gold futures market during the second half of the 1970’s; and before the U.S. and IMF auctioned off 40 mln ounces (averaging less than $250 per ounce). Of the numerous breakouts in those four decades it is the expensive lessons learned following three failed breakouts that cause us to be vigilant whenever gold moves into new highs.
Monday’s test of $1230 support was important. Today’s low of $1225 has tested the rising support line and 20-day exponential moving average. If gold can ‘spring’ $1230 with a higher close it remains healthy. However, a clear violation of the support line, 20-day ema and Monday’s low ($1225, $1227 & $1230) would result in a drop to the $1160’s or lower.
As presented in the report of June 20th, a vertical run to the Fibonacci targets of $1300 and $1380 remains valid if prices can hold this level.
Our reasons for vigilance
(Click on image to enlarge)
in this report are solely those of the author. The information
herein was obtained from various sources; however we do not guarantee
its accuracy or completeness. This research report is prepared
for general circulation and is circulated for general information
only. It does not have regard to the specific investment objectives,
financial situation and the particular needs of any specific person
who may receive this report. Investors should seek financial advice
regarding the appropriateness of investing in any securities or
investment strategies discussed or recommended in this report
and should understand that statements regarding future prospects
may not be realized.