04/10/2012   Daily Outlook

Greetings!,

 

On Thursday of last week we posed the following question: "Will gold act as a risk on risk off asset if we see the European Union debt crisis escalate, or will it react as a safe haven investment?"

 

Today's trading activity swung the pendulum to the safe haven camp. Spanish and Italian bond yields surged, fueling fears that the crisis may be worsening, (this according to Bloomberg News.) On renewed concerns regarding the European Union's debt crisis we have seen gold continue to rise off the recent lows that were just above $1600 per ounce.   

 

The U.S. equities markets during the same period have experienced a few rounds of lower pricing. The Dow Jones industrial average had its worst performance this year, trading some 200 points lower on the day.  

 

The oscillation between gold as a safe haven investment or a risk on risk off investment seems - at least for today - to have settled on the safe haven side. 

 

 As always, wishing you good trading,

Executive Producer
The Gold Forecast

gary@thegoldforecast.com 

On Skype Gary.S. Wagner

       Today's video 

  

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Proper Action

 GOLD & SILVER :

 

 Gold: Maintain long in gold @ 1650 avg Stop below 1623 

 

Silver:  Maintain  Long @ 32.46 avg Stop below 30.52 


*How far below? I suggest at minimum 1% to 1.5 %  gold = $16 below      silver .32 below   

   



MARKET FORECAST

Gary S. Wagner

 

Gold & Silver: On a technical basis there are two clear pieces of information that have been either revealed or highlighted in today's trading activity. The first thing we must notice in today's trading activity is the continuation of a price divergence between gold and silver. Historically silver tends to run in tandem with gold, the big brother leading the way. Over the last week two weeks we have seen silver react sluggishly on days when gold had higher pricing as well as having a steeper decline on days that gold sold off.

 

Second, today's trading activity continues to show that gold has very, very strong support just above 1620 per ounce. Today's video will continue our discussion on the current wave count, the triangle correction we identified, and whether our current wave is the D wave or the thrust wave. 

 

Gold Chart

 


  

 

 SILVER Chart:

 

 

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Before deciding to participate in Gold or Silver investments, you should carefully  consider your investment objectives, level of experience and risk appetite. Most importantly with futures activity do not invest money you cannot afford to lose.There is considerable exposure to risk in any futures exchange transaction, including, but not limited to, leverage,and market volatility that may substantially affect the price of  gold and /or silver. Moreover, the leveraged nature of futures trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you.