Greetings!,

Along with the commodities complex at large today we witnessed lower prices cross the board in the precious metals. A stronger U.S. dollar and weaker crude oil prices were cited as factors creating this risk off day. 

According to Bloomberg news today, Goldman Sachs is bullish on both gold and oil, but neutral on the commodities complex in general. It is Goldman's belief that weak second quarter earnings coupled with potential turmoil in the Middle East could be factors influencing those two markets. Their forecast for gold is as follows: 1785 an ounce in three months, 1840 per ounce in six months and 1940 over the next 12 months.

Although currently well off of the lows, on a technical basis there is evidence to suggest that today's pull back could be very short-lived, and in fact already completed. Today's video will discuss the technical evidence that supports this view.

As always, wishing you good trading,

       Today's video 

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Proper Action

 GOLD & SILVER :

 Gold: Maintain long in gold @ 1658 and 1642 (1650 avg) stop below 1623

Silver:  Maintain  Long @ 32.91 and 32.02 (32.46 avg) Stop below 30.52

MARKET FORECAST

Gary S. Wagner

Gold & Silver: 

A silver lining to today's dark cloud. Today's correction in the precious metals markets certainly caught many traders off guard. However, there is important information to be gleaned from today's trading activity. In Elliott wave theory wave one is typically used as a benchmark for the following waves. With wave one now firmly in place we can see that gold corrected exactly 61% of this most recent rally. We can also begin to forecast the minor third wave we are currently in. Today's video will look at potential targets for gold and plot our upcoming strategy.

Gold Chart

 SILVER Chart:

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