Gold Traders Take Profits
After four months of a resilient uptrend in the Gold market, it appears traders are beginning to feel the pressure to take profits. I believe Gold traders are keeping a close eye on the recent turmoil in the Stock Market and it brings back memories of the mass Metals liquidation to cover margins in their Stock portfolios. Despite a very weak U.S. Dollar, Geopolitical tension, and the signs of a weakening economy, it is my belief the gold trading community is content to take profits. After all, the Holiday markets are just around the corner.
I do not believe the BULL market is gone. In fact, I was of the belief the market was overbought and very top heavy and needed to retrace. If you look at a December Gold chart you will see that since August 16th the Gold market has been in a significant uptrend from the $652.00 level.
Most Gold traders see these profit-taking sell-offs as a buying opportunity. The prices of Bull spreads and options just got a lot less expensive. I am not the eternal Bull, however with all that is going on in the world -- Housing market woes, record Crude Oil prices, and fear of a recession, just to name a few, I am a firm believer the trend is your friend.
Many traders still believe the U.S. Dollar is in serious trouble and will need further assistance from the FOMC. The next scheduled meeting will be Tuesday, December 11th. Trade Smart
There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Manduca Trading LLC is not responsible for the accuracy of the information contained on linked sites. Manduca Trading LLC is a registered Independent Introducing Broker with the NFA and CFTC.
Most Gold traders see these profit-taking sell-offs as a buying opportunity. The prices of Bull spreads and options just got a lot less expensive. I am not the eternal Bull, however with all that is going on in the world -- Housing market woes, record Crude Oil prices, and fear of a recession, just to name a few, I am a firm believer the trend is your friend.
Many traders still believe the U.S. Dollar is in serious trouble and will need further assistance from the FOMC. The next scheduled meeting will be Tuesday, December 11th. Trade Smart
There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Manduca Trading LLC is not responsible for the accuracy of the information contained on linked sites. Manduca Trading LLC is a registered Independent Introducing Broker with the NFA and CFTC.
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