The Volatile Ride Continues....
This week the December Gold Futures traded a $213.00 range ! Amazing ! We made an another all-time High Monday trading as high as $1917.90 and Thursday we traded as low as $1704.40. After holding the $1700.00 level yesterday I Believe traders and investors (primarily from India) Began to feel comfortable reentering the market and looking for some bargain hunting buying opportunities. I believe all eyes were on this meeting today in Jackson Hole, Wyoming...As a result I believe this meeting was a bust . just more of the same. If in fact the central banks have a plan they certainly are not ready to share it with the rest of us. The no direction result launched gold $40.50 Higher today and settled at $1797.30 for the week.........
Other than the CME GROUP raising margin requirements nothing in the world's economic condition has changed. Therefore Gold reverted back to its rally today....
WEEKLY NEWS :
Another wild ride in the Gold futures market as the December Gold Futures contract traded another vast $65.70 range as traders and investors continue to try and predict what will be released from the Friday Jackson Hole, Wyoming central bank summit. Late yesterday the Chicago Mercantile Exchange Group (CME) once again raised the margin requirements for Gold futures trading 27%....This caused a mass exit of long positions in order to meet the required margin. The sell-off took the December Gold contract as low as $1705.40 early to mid-session...Mid to late session Gold gathered some support and some bargain buying opportunities to help stage a mass late session rally to actually close positive on the day .The volatility and the volume have been incredible. In fact it is a Gold bugs dream come true...
Jobless Claims were 417,000...worse than the projected 405,000.
Today's Gold trade covered a very vast $101.30 volatile and choppy range. The sell-off from yesterday continued as traders took profits and sold short as the market reflected a selling frenzy as support level after support level were blown through adding to the avalanche sell-off. This should not be surprising to anyone who trades Gold. I have been stating how TECHNICALLY OVERBOUGHT & TOP HEAVY this market has gotten. We as Gold traders have been Waiting and hoping this would happen. The market needed a healthy retracement in order to maintain its integrity...
Today's combined overnight and day session December Gold Futures contract covered a $66.00 choppy and volatile Range. During the night session December Gold explode through the $1900.00 per ounce level and recorded another all-time high trading as high as $1917.90...However, after strong manufacturing data from Germany and China gold traders began to profit take starting an avalanche of selling that is continuing in the post session as the December contract traded as low as $1833.00 as I write. Traders should remain on guard as this market is still technically overbought and extremely TOP HEAVY....With the Friday meeting of the Central Banks in Jackson Hole, Wyoming looming ever closer I expect traders to be more eager to book profits when available.
Today's December Gold Futures contract notched another new All-time high as it traded as high as (1898.60). Traders and investors globally continue to speculate on the global economic climate of the globe and continue to choose the precious metals as their currency of choice... The total lack of confidence regarding the world's currencies are causing savvier investors to safer haven alternative investments primarily tangible commodities such as Gold, Silver, and Diamonds. All eyes will be watching this Friday as Central Bankers will meet in Jackson Hole, Wyoming to discuss the financial state of the world.... The Gold market remains technically overbought and any positive U.S Dollar news released Friday may start a profit taking spree !
MY SWING NUMBERS 8/29
RESISTANCE # 2.....................$1826.00
RESISTANCE # 1.....................$1812.00
SUPPORT # 1.........................$1772.00
SUPPORT # 2.........................$1746.00
Mike Daly / GOLD SPECIALIST
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