Gold Futures

Gold futures in the April contract settled last Friday in New York at 1,330 an ounce while currently trading at 1,326 down about $4 for the trading week, however, its currently trading up $18 as money flows are coming out of the equity market and into the precious metals as a flight to quality. At the present time, I’m not involved in gold as this market remains reasonably choppy in my opinion as we did hit a 2 month low in yesterday’s trade as the chart structure is very poor which tells you that the monetary risk is too high to enter into a bullish or bearish position.

Gold prices are still trading under their 20 and 100 day moving average as the short-term trend is the downside with a possible double top created around the 1,365 level as I still see choppiness ahead so avoid this market at the current time and look at other stronger trends that are developing.

The U.S stock market has dropped about 1200 points over the last 4 days as that’s what is finally starting to support prices as the U.S dollar hit a 6 week high in yesterday’s trade as that is also keeping a lid on prices here in the short term as I will wait for a better chart pattern to develop before entering into a position. If you take a look at the daily chart there is major support around the 1,300 level as in yesterday’s trade we traded as low as 1,303 as I suspect that will be strong support in the weeks ahead.

TREND: LOWER—MIXED

CHART STRUCTURE: POOR

VOLATILITY—SOLID