Weekly Gold and Silver Market Recap with Mike Seery for Week Ending January 23rd

Our trading partner Mike Seery is back with his weekly futures market recap. As always he includes where he is placing stops to lock in profits we have all been enjoying if you have been following Mike this year.

Gold futures in the February contract are trading above their 20 and 100 day moving average settling last Friday in New York at 1,277 while currently trading at 1,288 an ounce down about $12 this afternoon as I have been recommending a bullish position when prices cracked 1,245 and if you took that trade place your stop at the 10 day low which in Monday’s trade will be 1,217 still risking about $70 or $7,000 per contract plus slippage and commission, however the chart structure will start to improve on a daily basis starting next week.

Gold prices hit a 5 month high this week and now is being considered as a currency and not a commodity as nobody wants to own any of the foreign currencies especially the Euro currency which was down another 100 points today sending the U.S dollar to an 11 year high as countries like Yemen are collapsing right in front of our eyes and many other countries are getting crushed by the low crude oil prices so investors are seeking a safe haven in gold despite today’s negative tape.

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Silver futures in the March contract are slightly lower this Friday afternoon in New York after settling last week at 17.75 while currently trading at 18.30 up around $.50 for the trading week continuing its bullish trend as prices are trading above its 20 & 100 day moving average hitting a 4 month high as investors are fleeing out of the foreign currencies and putting money back into the precious metals at the current time.

I’ve been recommending a bullish position in silver for several weeks when prices broke above 17.00 an ounce and if you took that trade make sure you place your stop loss below the 10 day low which currently stands at 16.43 currently risking around $2 or $10,000 per contract plus slippage and commission as silver is very large contract controlling 5,000 ounces, however that stop loss will be raised on a daily basis as the chart structure will improve dramatically come next week.

Silver is now considered as a currency in my opinion and not a commodity as nobody wants to own any currencies except for the U.S dollar sending money flows back into the precious metals as I think silver prices could test $20 here in the short term as I’m very pessimistic many of the commodity sectors except for silver and gold at the current time as I think prices continue to climb despite what the U.S dollar does as short term demand has certainly come back into this market in my opinion.
Trend: Higher
Chart Structure: Improving

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