Mike Seerys Weekly Gold Market Recap for Week Ending Friday December 19th

Gold futures in the February contract are trading below their 20 and 100 day moving average settling last Friday in New York at 1,222 currently trading at 1,196 continuing its long term bearish trend as I’m currently sitting on the sidelines in this market as volatility is too high and the price remains extremely choppy as we head into the new year.

Gold prices rallied as high as 1,240 last week before settling back despite the fact that the stock market had a wild ride but the interest still is in the S&P 500 which looks like it’s going to close right near another record high today. The problem with the gold market is the ETF market in gold might be sold come year end for tax purposes and when that happens the ETF than has to sell the futures contract so I still think lower prices are ahead but this market is difficult to trade at the current time so move on and find a market that is trending strong in one direction.

Get more commodity calls from our trading partner Mike Seery......Just Click Here

The U.S dollar hit another multiyear high which is generally pessimistic commodity prices and especially precious metals prices, however with turmoil in Russia gold prices have been extremely volatile with many $30/$40 price ranges on any given day so if you do trade this market make sure you place the proper amount contracts limiting risk to 2% of your account balance as I have to admit it’s fun to watch but I remain on the sidelines until a true breakout occurs.

Rumors of Russia having to sell some of their gold reserves sent gold prices down nearly down $30 in Wednesday’s trade however that rumor has not been verified at the current time but with the problems in Russia it would not surprise me about anything.
Trend: Mixed
Chart structure: Poor

Get out latest FREE eBooK "Understanding Options"....Just Click Here