Gold futures in the December contract had one of the most volatile and crazy trading weeks that I can remember finishing this Friday afternoon down $35 at 1,333 an ounce after settling last Friday at 1,308 rallying on the concept that the Federal Reserve will not taper bond purchases which sent many of the commodity markets sharply higher including gold on Wednesday afternoon, however reality has set in as Goldman Sachs came out stating that they believe the Federal Reserve will start tapering in December which put a lot of pressure on many commodities including the stock market today.
I have been advising traders to sit on the sidelines in the gold market & I still think gold looks relatively weak closing right on session lows today as the bond purchasing in my opinion is overrated. The trend in gold is lower at this point but wait for better chart structure to develop before looking to enter into this market as volatility is too high. The U.S dollar hit an 8 month low which also propelled gold prices higher on Wednesday as the Federal government continues to try & support asset prices and it also continues to try to devalue the U.S dollar which is generally bullish commodity prices, however money seems to the flowing back into the S&P 500 as prices are hitting all-time highs while taking money out of gold market.
TREND: LOWER –CHART STRUCTURE: POOR
Here's additional commodity updates from our very own Mike Seery
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