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Weekly Gold Report


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Gold and silver reversed course to end the week and the reasons why were elementary in my view. Stock indices were trading at all time highs across the board while the Dollar index futures contract looks like it could potentially be headed for a breakout to the upside. Both markets usually run inverse of gold and silver and the unrelenting rally that remains intact in the stock market continues to provide investors with risk on sentiment. Silver had just made an impressive .60 cent push higher on Wednesday and Thursday on fund re-emergence into the metal to start the month. After testing the 50 day moving average at 17.22, silver retreated into the unemployment number this morning and then was routed as stocks and the Dollar rallied throughout the morning. Gold exhibited the same type price action this week, trading aggressively mid-week above the 100 day moving average at 1278.0 and up and through my weekly first resistance level at 1283.4,posting a weekly high at 1285.1. Like silver, higher stocks and rally in the greenback thwarted any further bullish momentum, and again after today's jobs report was then sold into. Gold traded down to 1265.9, which was the weekly low before recovering on the close to finish the week at 1269.2. For the week, December gold lost $2.60 cents while December silver lost .08 cents to close at 16.83.

Technically both markets need to hold support levels next week or succumb to long liquidation and new multi-month lows on the charts in my opinion. My technical swing levels for next week come in as follows. For gold support is down first 1261.7. This is a key area as the 200 day moving average sits at 1261.9. A close below these levels and then we move down to 1254.2. A close under this level and then the market challenges a double bottom made over the summer at 1242. Resistance is up at 1280.9. A close over and 1292.6 is next. For silver, support is down first 1656.5. A close under and 16.30 is next. Resistance is up at 1717.5, a close above here and 17.52 is next.

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About the author


Sean Lusk is a registered commodity broker and Director of the Commercial Hedging Division of Walsh Trading in Chicago. Sean began in the business as a runner on the trading floor during summer breaks from college in 1993. Upon his graduation from Southern Illinois University at Carbondale in 1996, Sean began his career on the trading floor of the Chicago Mercantile Exchange (CME). Overseeing billions of dollars of transactions working as a clerk in the Eurodollar pit, Sean took the next step and became a floor broker and member of the CME in 2003. He handled customer orders for banks and investment houses from all over the world from inside the Libor pit at the CME.

Now, at Walsh Trading, Sean utilizes his experience in the marketplace and his professional client service skills to aid and assist customers in their trading endeavors.  

He writes daily and weekly commentaries focusing on both the Precious Metals and Agricultural Markets along with related market activity.

Sean has been quoted in various media outlets discussing futures markets. 

These include:

 

  • Futures Magazine
  • Reuters
  • Forbes
  • Kitco
  • Nikkei Press
  • CCTV.com

 

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