Tag: trading gold

Gold Forming Possible Bullish Flag at Massive Trend Line Resistance

Gold Forming Possible Bullish Flag at Massive Trend Line Resistance

A bullish flag pattern must be confirmed before giving buyers a green light, and with the multi-year trend line reinforcing resistance in the 1320 area, a reversal back to the downside is also a legitimate possibility. If we do see gold turn lower, profit-taking by gold bulls may drive prices back down to at least the 38.2% retracement of last week’s rally around 1300, if not the 61.8% retracement around 1280. Depending on how the current pattern breaks, we should have a lot more clarity and a strong near-term bias on gold by the middle of this week.

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COMEX Registered Gold Stocks At Record Low Level

| January 15, 2014 | Category: Trading
COMEX Registered Gold Stocks At Record Low Level

The latest statistics on the COMEX gold stocks show that the amount of gold in the “Registered” category is at a record low level. Gold has been draining away at an astonishing speed in 2013 and the trend seems to continue in 2014. We reached out to one of the veterans in precious metals markets and investing, David Morgan, to get his view on this trend.

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Gold Commitment Of Traders Report: 20 December 2013

| December 20, 2013 | Category: Technicals
Gold Commitment Of Traders Report: 20 December 2013

We have a source of data indicating a STEADY BUYING occurring by the large commercially-oriented players in the gold market so that their short positions are being covered even as they have moved to some LONG POSITIONS in the futures market so as to TAKE DELIVERY. All this is taking place against a backdrop of falling gold prices while the SPECULATIVE COMMUNITY, is selling.

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Gold-Futures Buying Returns

| November 8, 2013 | Category: Trading
Gold-Futures Buying Returns

Today per the latest CoT this 2013 deviation is back down to 116.3k contracts. Futures speculators still have to buy back the equivalent of 11.6m ozs of gold merely to mean revert to their 2009-to-2012 average levels of total longs and shorts with no overshooting. This remainder is 1.7x larger than the big chunk of shorts the traders initially covered in July and August which catapulted gold sharply higher! It is very bullish.

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It’s Official – Goldman Sachs Was Buying GLD While Advicing To Sell

It’s Official – Goldman Sachs Was Buying GLD While Advicing To Sell

In Q2, Goldman Sachs added a stunning (and record) 3.7 million ‘shares’ of GLD. As Paulson dumped his GLD, Goldman lapped it up to become the ETF’s 7th largest holder.

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4 Reasons Why Hedge Funds Will Continue To Dislike Gold

4 Reasons Why Hedge Funds Will Continue To Dislike Gold

For gold bulls it is enriching to analyze the arguments of the ones at the other side of the trade. In the case of gold one should simply turn on a mainstream media channel to get this information. In that respect, a CNBC interview highlighted four reasons why hedge funds will continue to dominate the gold price down. When analyzing these arguments, however, one can quickly conclude that it is a trader’s point of view. Moreover, for each argument there is a valid counter-argument.

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Jim Sinclair: The Last Days Or Weeks Of The Correction In The Metals

Jim Sinclair: The Last Days Or Weeks Of The Correction In The Metals

The earliest date of the end of the decline is the 28th of February and the longest period of pressure is until the 27th of March. Thereafter gold is released to the upside which will be a minimum of $3500.

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Gold Cycles: Bulllish Gold Price Outlook

| November 10, 2012 | Articles: Gold Silver Prices
Gold Cycles: Bulllish Gold Price Outlook

This is an exclusive excerpt from The Financial Tap, who offers a FREE 15-day trial with complete access to the entire site. Gold is off to a flying start in this new Daily Cycle and it’s exactly what we expected and hoped for.  If this is the first Daily Cycle, then we should see a consistent and grinding move higher from this point forward.  The first Cycle has a habit of relentlessly grinding higher, much to the chagrin of investors who continue to wait for a pullback to buy into this new rally.  Investors who missed the ICL will often look at the final ICL price compared to the quick $50 rally of a new […]

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COT Report Is Short Term Bearish For Gold

COT Report Is Short Term Bearish For Gold

The Gold Cycle looks fairly easy to read; once you strip out any biases you may carry.  Quite simply, it’s screaming Investor Cycle top and warning of a significant decline.   Sure when viewed through the idea of endless printing and world crises’, one could easily suggest or envision much higher prices before any significant pullback.  This type of thinking is actually what drives IC tops, an unrelenting belief that a Cycle will continue higher based on short term speculative interest and a fear of missing another move. But the facts are that we’re very deep in the timing band for an IC top, we have a very bearish COT report, […]

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Chart of the day on September 14th – Gold

Chart of the day on September 14th – Gold

Open Interest and Volume are both rising together on the daily chart in Gold, which historically has been healthy for a continuation in the trend.  See right hand side 6 month daily chart below.  I don’t have any near term resistance other than the round number 1,800. The 30 minute chart, see left hand side below had two 30 minute bars with approximately 50,000 contracts traded in the past six trading days. Open Interest increased in Gold futures 5,594 contracts yesterday, so this rally is not primarily “short covering”.  You cannot have an increase in short covering with open interest rising.  New shorts on a NET basis are being placed, with new longs, […]

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Gold and Silver Continue Marking Time

Gold and Silver Continue Marking Time

Both Gold and Silver remain in consolidation patterns with tightening ranges as speculative HOT money flows which are exiting are being met by value-based buying and accumulation by stronger hands. The loss of speculative interest in the precious metals over the last few months can be seen by the steady decline in overall open interest (the number of contracts open). Generally speaking, whenever speculators are interested in establishing positions in a particular market, the open interest will rise. When they are not, the open interest will fall. Look at the following open interest chart of gold and tell me which of the two above-mentioned possibilities is occuring? Answer – speculative […]

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Complex “Head and Shoulders” a “Cup with a handle” on Dollar Index and the Gold Triangle

Complex “Head and Shoulders” a “Cup with a handle” on Dollar Index and the Gold Triangle

Interesting topping pattern on the Dollar Index in the near term 30 minute chart, see left hand side chart below.  This is a complex bearish “Head and Shoulders” reversal pattern.  All of the right shoulders off the head have held their stop losses so far. The big issue is really the Weekly chart, see right hand side below.  There is a very bullish “Cup with a Handle” pattern.  Weekly charts are “numero uno” when it comes to understanding order flow from the larger degree timeframe traders.  Since the breakout there has been a few profit taking “Throwbacks” to the breakout area.  This cup with a handle is the dominant pattern and should […]

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Gold once again reacts at critical trendline

Gold once again reacts at critical trendline

One of the great futures battles between the bulls and the bears is taking place in gold futures recently.  The daily chart right hand side below has once again seen gold react at an important multipoint trendline.  This is now “significant” trendline support.  It won’t be long before the upper or lower trendline is faced with another test. The chart is what I would refer to as “ripe” for an “Initiative” type move into “Vertical development” or a market that has potential to be in “Imbalance”.  A market that is in imbalance is a market that does not have enough offers or bids to meet large orders that come in “at […]

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