Gold (December) held above the $1206 level overnight, and prices are currently trading around $1210. A sustained move above $1215 would support another run at the $1220 level.
The Dollar (currently 94.84) is approaching resistance near 95.00, touching 94.93 earlier this morning. Prices are at a crossroads. Above 95.00 – 95.10 and the cycle may have bottomed. Whereas declining below 94.65 would recommend a trip to 93.75 and perhaps 93.00 before bottoming. Whichever way it breaks will determine gold’s short-term path. I’m leaning towards another drop in the dollar and a surge in gold above $1220. We should know which scenario is playing out later today or tomorrow.
The metals markets are very tricky right now. To keep up with the volatility, I need to become more active in my trading and hedging strategies. So expect more frequent position updates.
After looking over the longer-term charts, I’m really beginning to like the setup in oil. I think prices will reach a meaningful top within the next 1-2 weeks. If correct, we could see a decline to $60.00 or even $55.00 by October/November. I’ll look to start building up short positions in the not too distant future.