GOLD TRADE ALERT (3:00 pm EST)
We will be leaving the timing window for a reversal in gold and silver tomorrow, and gold is now making a double bottom to the low of Feb. 5. This appears to be a good buy spot and so I am going to enter a long position in gold today. This market is still volatile, however, and there is a chance of gold breaking down further here. For this reason I am going to set a close stop loss for this trade on a close below $1220. Because silver is even more risky than gold in volatile trading environments, I am going to hold off buying it for now. It is possible for both metals to drop a bit further into the end of the week so we could see a better entry point for silver at that time. An ideal scenario would be for silver or gold to make a new low this week (but not both) for a case of intermarket bullish divergence. Going long in gold today but staying out of silver.
We will be leaving the timing window for a reversal in gold and silver tomorrow, and gold is now making a double bottom to the low of Feb. 5. This appears to be a good buy spot and so I am going to enter a long position in gold today. This market is still volatile, however, and there is a chance of gold breaking down further here. For this reason I am going to set a close stop loss for this trade on a close below $1220. Because silver is even more risky than gold in volatile trading environments, I am going to hold off buying it for now. It is possible for both metals to drop a bit further into the end of the week so we could see a better entry point for silver at that time. An ideal scenario would be for silver or gold to make a new low this week (but not both) for a case of intermarket bullish divergence. Going long in gold today but staying out of silver.
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