Gold Futures--- Gold futures in the August contract are lower by $4 at 1,159 an ounce continuing its bearish momentum as I’ve been recommending a short position from 1,170 and if you took that trade continue to place your stop loss above the 10 day high which has been lowered to 1,188 risking around $28 or $1000 per mini contract plus slippage and commission from today’s price levels.
Gold prices are trading below their 20 and 100 day moving average telling you that the trend is to the downside as I see no reason to own gold as the commodity markets in general look extremely weak and I think the next leg down will test 1,130 as platinum, palladium, copper, continue to put pressure on the precious metals coupled with the fact that China is a mess and Europe is slowing down as deflation is in the air.
The chart structure is outstanding at the current time which allows you to place a tight stop loss therefore lowering monetary risk as risk is the only thing that matters when deciding to make a trade. Silver prices were higher by 20 cents as I’m still short that market while placing the stop at the 10 day high of 16.04 risking around 70 cents or $700 per mini contract plus slippage and commission. TREND: LOWER –CHART STRUCTURE: OUTSTANDING
