Gold Bugs Are Stirring, Is It Time To Buy?
Gary Kamen | Jan 08, 2017 07:01PM ET
For 2016 gold closed at $1,151.70 after opening the year at $1,060.50 ($9,120 range). The low in 2016 was $1,061.50 seen the week of January 4 and the high $1,377.50 was seen the week of July 4 ($31,750 range). Looking at the past 2-years on the weekly chart you can see the low at $1,046.20.
So while there were numerous fundamentals pushing gold up and down throughout the year, (Brexit, US Election), the real reason for any sustained weekly move up in gold or for that matter in any market is “buyers and sellers”. Big money buyers and sellers, as you can see on the weekly chart.
The first few weeks of the year 2016 you can see the sell side, Producers and Swap Dealers, increased their selling and the buy side, Managed Money, increased their buying. Now look at the sustained move up into March. Would not have happened without the buying and selling. You can see the bearish move by big money. Then the bull resumed and price continued to rise. In September a bear showed up and price weakness can be seen. As the bearish big money posture strengthened see gold’s sustained move down.
Look at the daily chart for the most recent trade action at Trends in Futures. So is it time to go long gold? Gold has been rising the last week of December and the first week of January, and this could continue as a Green CST seen on Dec 28. I do not see a sustained long term move up in Gold like we saw early 2016 as big money has yet to move in that direction. When the bull shows up here, and it will in 2017, hold on for the ride up. A ride I do believe that will take out last year’s high and beyond.
There are numerous big questions coming in 2017. Trump? FED rate hikes? UK Brexit? And OPEC Production Cuts? So keep an eye on how big money is posturing I guarantee it will help you catch the next strong trend up in Gold.
Also see the Commercial Tracker to see the direction big money is moving in numerous markets.
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