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7th september Gold Trend Analysis

Lets go right to the markets

Trades — Long 1 mini gold at 1793 — stop 1840 stop close only — I’m exiting market now at 1809 and will stand aside.

Long 1 mini silver at 40.80– stop 40.60 stop close only —– I’m exiting now at 40.80 for a breakeven trade and will stand aside.

It looks as though the save the world news from Germany and Europe is here this morning as all of a sudden — all the bailouts are going to be taken care of and the world is going to be fine once again. The IMF is now seeing global growth at 4% — the Bank of Canada no longer needs to raise rates — the new Italian Austerity plan would include 3% tax on incomes above 420K — Germany went ahead with the bailout of Greece —- and we can go on and on this morning.

From a trade perspective one needs to always be disciplined but every now and then there is a gut feel one has that should be heeded. Such was the case last night on the website update when gold was trading at 1875 and I discussed as much. Turns out the gut was correct this time and the discipline took a lot of profit out of this last trade.

Just after midnight EST gold was sold from 1875 down to 1815 in just 10 minutes. There was a bounce back to 1850 but the New York market low this morning shows a Forex Print at 1798 and a current price of 1815.

Another 300 billion dollar package will be presented by US president Obama on Thursday.

Going to the Chart

While the overall action on the chart only shows a 50% pullback of the move from the last two weeks, the price chart can extend to lower moves. The next support area on the chart is the 1784 area and then 1747.

In summary — the raid on the metals is deep and it looks as though the raid can extend further and a pullback into mid month is most likely in play.

FRANCAIS ESPANOL ITALIANO CHINESE

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Thoughts
"For a mountaineer, the important things are the effort, the posture and the muscles. The rope that holds him serves no purpose when everything works but it gives him a sense of security. In the same way, all gold does is ensure confidence; it's a safe haven."