Golden Volatility / Opportunity

The recent trade in the Gold market has proved the resiliency of Gold traders. In the past eight months we have traded a $300.00+ range and $20.00 + daily ranges are now common place. There have been many reasons for this trend the Government bail-outs, huge unemployment numbers (9% unemployed) housing foreclosures, and Historic Financial Institutions failing just to name a few.
With the Stock Market falling from the 14000 level to the present 8200 level and Crude Oil dropping From the $147.00 per barrel level to $59.00 per barrel presently it certainly proves the stability of Gold. Gold has certainly been a “flight to safe haven” market for investors. We are presently seeing a sideways to BULLISH trend in my opinion. Despite smaller ranges of late we are still seeing 50.00+ ranges monthly and it appears technically we may have a move to the upside.

I have witnessed a huge amount of physical Gold and Silver (Bullion and Coins) being purchased and shipped recently. There are many reasons for this such as Impending inflation worries (Gold should rally in inflationary times), having physical metals creates a leverage and credit with lending institutions, adds diversity to your portfolio, and the IRS allows Gold to be held in pension funds.
I have been recommending trading Gold from a long term perspective simply to avoid these huge volatile swings. Most of the huge swings have occurred during the night session as of late. This makes it very difficult to carry position over night regardless of using stop -loss orders. The Trading ranges and swings have been huge. I have been trading Bull Call spreads.
If you are looking to talk gold trading strategies or looking to purchase physical metals I can help.
Mike Daly
Senior Broker / Gold Specialist


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