Gold Rebounds….

The Gold market has shown its ability to rebound and bounce back from adversity. Since June 27th the Gold market has rallied from $642.70 to its present level $664.00 (July 11th) virtually unnoticed. In my opinion the market was over-bought at the $700.00 level and created a profit take and stop/loss selling frenzy that caused the market to re-trace back to the 442.50 level.


As a long time Gold guy I realize the public prefers a Bull market (especially in the Gold). The public investor prefers to put its monies in Gold as a “safe haven” during uncertain times. Economic and geo-political tensions often drive markets in one direction or another causing over bought / over sold situations. Gold attracts monies from the entire world. This also means the Gold also inherits the volatility from the entire world.
Recently Wednesday (7/10) I read a Dow Jones news report which read:
“The U.S. has deployed a third aircraft carrier to the Persian Gulf, U.S. Naval Forces Central Command said Tuesday”. Also Ben Bernanke (Chairman FOMC) reports certainly not very supportive of the U.S. Dollar. As a former I learned the traders who initiate inter / intra / market spreads and hedged option positions were the most successful. In the present economic and geo-political climate it’s truly a crap-shoot to scalp trade the Gold unless you are a disciplined swing trader and using stop/loss orders.
In my opinion if the Gold market can trade through $675.00 (August) and hold that level it will have traded through a very key resistance level and point to mention re-capture industry and public monies. I believe until that happens the public will remain a little
Gold shy.
Keep an eye on the mounting tension especially since the failed bombing attacks against the United Kingdom. It certainly It certainly is a different world these days.
Anyone interested in receiving a free options strategy booklet can contact me via email
GOOD TRADING !
Mike Daly
Manduca Trading, LLC
1.888.282.2770

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