Will the Bearish Trend in Gold Continue?

Our trading partner Mike Seery weighs in on gold.....how low can gold go?

Gold futures in the December contract are plummeting this Friday afternoon in New York down over $20 breaking $1,200 an ounce currently trading at 1,194 with the next major level of support which was hit on New Year’s Eve of 2013 at 1,184 and I think that level will be broken as I’ve been recommending a short position gold when prices hit a 4 week low many weeks back at 1,287 and if you took the original recommendation place your stop above the 2 week high which currently stands at 1,237 as the bearish trend is getting stronger to the downside on a weekly basis in my opinion.

The main reason for the sell off today was the fact that the unemployment came out this morning stating that the economy added 250,000 new jobs with an unemployment rate of 5.9% sending the U.S dollar up 100 points as the Euro currency is down 150 points which is a very bearish fundamental indicator to the precious metals and the commodities as a whole as gold prices are still trading far below their 20 & 100 day moving average so continue to play this to the downside and take advantage of any rallies while placing the proper stop loss as lower prices are ahead.

The United States unemployment rate is at 5.9% which is the lowest since July 2008 which basically means that the interest rates almost have to be raised as they are way too low for an economy that is back on its feet as there is no reason to own gold or any of the precious metals at the current time as platinum is also in a complete free for all.

TREND: LOWER
CHART STRUCTURE: EXCELLENT

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