Gold futures in the February contract are slightly lower this Friday afternoon in New York after settling last Friday at 1,216 currently trading at 1,260 as I’m currently recommending a long futures position while placing your stop loss below the 10 day low which is around 1,209 risking around $50 or $1,650 on a mini contract plus slippage and commission. Gold futures are trading above their 20 and 100 day moving average hitting a 5 month high as the chart structure will also start to improve on a daily basis starting next week as the market has caught fire recently due to worldwide problems as money is pouring back into the precious metals and out of the S&P 500 in the beginning of 2015.
Yesterday the Swiss government announced they will let the Swiss Franc float rocketing that currency up while sending shock waves through the bond and currency markets and it certainly looks to me that problems are here to stay here for a while as Europe is a mess and this could push gold up to the next resistance level of 1,300 – 1,320 so take advantage of any price dip while maintaining the proper stop loss risking 2% of your account balance on any given trade as gold has finally turned into a short-term bull market once again.
Trend: Higher
Chart structure: Improving
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Silver futures are trading above their 20 day but right at their 100 day moving average settling last Friday at 16.12 while currently trading at 17.05 an ounce as I’m recommending a bullish position in silver while placing your stop below the 10 day low which is at 16.11 risking around $.90 or $4,500 per contract plus slippage and commission as the chart structure will also improve on a daily basis starting next week. The next major level of resistance is between 17.35 – 17.50 and if that level is broken I would have to think that silver prices have a chance to reach $20 here in the short term as once again money is flowing into the precious metals and out of the stock market for the 1st time in several years as investors are thinking that silver may have been overdone to the downside.
Many of the commodity markets continue to head lower as there is weak demand throughout many sectors due to the fact that the U.S dollar is at a 9 year high while silver & gold prices have also been in bearish trends until recently, however with what’s going on in France and Isis running havoc throughout the Mideast people are finally looking at the precious metals as a safe haven once again so the rest of the commodity markets can go lower with gold and silver still moving higher but play by the rules as the chart structure meets criteria in my opinion.
Trend: Higher
Chart structure: Improving
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