I am currently bullish the US Dollar Index with a projected target of $87.66 unless the market breeches $83.14.  The paper assets seem to be stimulated by our US Government at this time.  On Monday the Fed purchased 30-year  bonds, with a long-term plan to buy up to $300 Billion over the next six months.  The investment world has turned it's focus to the Stock Market.  The Stock Market  may attract some buying interest  on this break .  This all weighs on the Gold Market along with the Crude Market unable to break out of the current range.  India has been selling scrap gold to take advantage of the higher prices.  February was the first month in a long time that India had virtually no gold imports.  Possibly, around 6 tons of the scrap Gold may have actually been exported from India.  As this all appears temporarily negative for the Gold Market, it is my opinion that the scrap metal will not suffice for the increasing demand for Gold.  The range for the April Gold contract may be  $883.60 to $968.10 .  If the April Gold breeches $898.40, I believe it will be heading for $848.20.  Once it can penetrate $968.10, it is my opinion that the Gold Market can get legs and head for the previous highs.  

 Gold 

The April Gold Contract has traded in a range that may be difficult for traders to place stops to watch their risk management.  

The CME Group announced that they introducing Mini Gold Kilogram contracts to meet the increased interest of investors.  The smaller contracts may allow investors to participate in the Gold Market with less margin.

Another suggestion for bullish Gold traders would be to possible look at Bull Call Spreads:  Samples of these spreads:

June Gold (60 days until expiration) 5/26/2009

Buy GCM9 1000 Call and Sell GCM9 1050 Call for approximately $1000.00  plus commission and fees. 

Profit Potential approximately $4000.00  minus commissions and fees.

Buy GCM9 950 Call and Sell GCM9 1000 Call for approximately $1500.00  plus commission and fees .

Profit Potential approximately $3500.00  minus commission and fees.

Due to the fluctuations in this market, please consult with your broker or call us to strategize a risk management plan in line with your personal risk tolerance.   Traders that wish to participate in the Gold Futures Markets may look at the E-Mini Gold contracts which have a lower margin requirement than that of the larger Gold contract.  Please look for current margins before entering this market and be sure to allow cash cushion for any adverse conditions.  Please consult with your broker to calculate the risk, stop loss orders or option strategies before entering such a volatile market.   Investors that wish to take a position in the Gold Futures market should devise a plan according to their goals, risk tolerance and the amount of money they are willing to risk in this sector.  Like many other investments, the success of the trading plan must take into consideration the timing of the entries and exits.

Please call or email me for the complete recommendation to coincide with your risk tolerance, so that we may apply the correct Money Management.   The Weekly Gold Digger is a Free Weekly subscription to receive trading opportunities by email along with fundamental commentary and basic technical points of interest.   Take a close look and feel free to call in and talk to me in greater detail.  It would be my pleasure.  

Take a close look and feel free to call in and talk to me in greater detail.  It would be my pleasure.  Good trading!

Call me at (877) 224-1952 or email me at lburton@danielstrading.com

 Futures' trading involves the substantial risk of loss and may not be suitable for all investors.  Trading advice is based on information taken from trade and statistical services and other sources that New World Trading believes are reliable.  We do not guarantee that such information is accurate or complete and it should not be relied upon as such.  Trading advice reflects our good faith judgment at a specific time and is subject to change without notice.  There is no guarantee that the advice we give will result in profitable trades.  All trading decisions will be made by the account holder.  Past performance is not necessarily indicative of future results.  Any dollar amount quoted is exclusive of commissions and fees.