Wednesday July 10, 2013 08:45
Continued physical demand from the Far East and short covering pushed gold through the $1,237 level, discussed as an entry point yesterday, and now the yellow metal finds itself at $1,250 this morning. I would need to see gold close above the $1,267 level for further conviction to a test of $1,300. The US dollar has gained respectably over the past three trading sessions which “should have” created further selling pressure on the metals. Whenever a “should have” turns out to be a different outcome, it bears watching.
For a trade, I would stay with the long at $1,237. It’s house money and I would place the stop at entry point, looking to take some home, after you get the meal comped at the $1,267 level.
By Peter Hug
Global Trading Director
Kitco Metals Inc.