05/21/2012   Daily Outlook

Greetings!,

 

A quiet weekend equals a quiet Monday.

 

It seemed as though the global markets had an absence of any major news over the weekend. This weekend was packed with not only a meeting of world leaders, the Group of Eight, who met at Camp David, but also the continued fallout from the J.P. Morgan multibillion dollar loss, and the European Union's never-ending sovereign debt crisis.  

 

Whether or not Greece will remain as a member nation in the E.U. is still undetermined. Even with assurances from the G-8 and their wishes that Greece remain part of the E.U., there is still the issue of a revamped budgetary policy that will allow for loan repayments.

 

Lastly, traders continue to focus on the U.S. Federal Reserve as well as the European Central Bank's actions regarding any stimulus and quantitative easing in attempts to stimulate the U.S. and European economies. These actions, of course, would be interpreted as inflationary and bullish for the precious metals.

 

As always, wishing you good trading

Executive Producer
The Gold Forecast

gary@thegoldforecast.com 

On Skype Gary.S. Wagner

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Proper Action

 GOLD & SILVER :

 

 Gold:  long @ 1589 stop below 1550

 

Silver:  long @ 28.43 stop below 28.00

 

(should equal 1 to 1.5 % below 28)

 

 



MARKET FORECAST

Gary S. Wagner

 

Gold & Silver:  on a technical basis, today we saw both gold and silver find their first levels of resistance. The intra-day high in gold was 1600.30. The century marks in gold - such as 1600, 1700, etc. - are more psychological resistance barriers then technical ones. As such, today as well as for a brief time on Friday, we saw gold trade to 1600, but not have the ability to effectively close above it. As you can see from the silver chart below, 28.85, which is a 76% Fibonacci retracement, seems to be fairly solid resistance for silver at this point.

 

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.