Gold Market Commentary For Friday Morning Sept. 16th

Gold was higher due to short covering in Thursday evenings overnight trading session as it consolidates some of the decline off last week's high. Stochastics and the RSI remain bearish hinting that a short term was achieved and a double top formed.

If December extends this month's decline, the reaction low crossing at 1705.40 is the next downside target. Closes above Wednesday's high crossing at 1848.20 would temper the near term bearish outlook.

First resistance is Wednesday's high crossing at 1848.20. Second resistance is last Tuesday's high crossing at 1923.70. First support is the overnight low crossing at 1765.40. Second support is the reaction low crossing at 1705.40. Gold pivot point for Friday morning is 1795.40.


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Adam Hewison: It Never Seems to go Away, Does it?

It never seems to go away, does it?

What I’m referring to is the problems with the economy and the sovereign debt problems in Europe. It would appear as though no politician wants to touch these major economic problems with a ten foot pole. Of course like everyone else on the planet they are concerned about protecting their own jobs and getting reelected.

The market action in the equity markets today can only be described as negative. Gold may be having a major reversal, and the dollar is soaring to its best levels in quite some time. Like I have said before, the markets are never boring.

The gold market reach to new high levels for the move and hit $1,920.50 an ounce. Unfortunately was not able to maintain this level and fell back dramatically creating a potential negative engulfing line similar to what happened on August 23. It is too early to say the market has topped out but certainly one should be very, very careful at these levels.

As we mentioned in previous publications we have been looking for the gold market in particular to make its high in the 3rd quarter of the year. We may have seen the highs, but it is too early to tell. Short term, intermediate and long term traders should maintain long positions with the appropriate money management stops in place.

Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Positive
Combined Strength of Trend Score = + 90


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Short term traders should now be on the sidelines in gold as a daily Trade Triangle flashed an exit signal at $1,291.70. Long and intermediate term traders should continue to hold long positions in gold.

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Gold Market Commentary For Wednesday Evening

Gold closed higher on Wednesday as it extends the rally off February's low. The mid range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

If April extends the rally off February's low, January's high crossing at 1166.70 is the next upside target. Closes below the 20 day moving average crossing at 1102.40 are needed to confirm that a short term top has been posted.

First resistance is today's high crossing at 1145.80
Second resistance is January's high crossing at 1166.70

First support is the 10 day moving average crossing at 1117.70
Second support is the 20 day moving average crossing at 1102.40


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