What’s Up, What’s Down: New Contract High for Gold

Comments for Friday, October 9, 2009

Looking Ahead to Today by Reflecting Back at Thursday’s Price Action


Higher to sharply higher closes on Thursday for copper, gold, silver and platinum. All of the metals are still in up-trends with copper’s sharp rally ending my sell signal but still is in a strong resistance area and can be sold up here if you are bearish Gold made a new CONTRACT HIGH AND CLOSE while silver made new recent high and close which pretty much tells the story. Platinum joined the rest of the metals with another strong settlement needing to close over 13500 again basis the January contract but still bullish overall.

Silver Chart


Higher closes yesterday for the euro Fx, Swiss franc, Japanese yen and Canadian dollar while lower for the British pound, Aussie dollar and dollar index. All of the currencies still are in uptrends with the exception of the pound and there are also weak (at this time) potential topping formations in the euro and franc with support under 144000 for the former and 9500 for the latter. The yen made a new recent high and close since January while the Canadian dollar settled lower but is in a strong uptrend after busting out of a trading range between 9000 and 9400 dating back to July on Tuesday. The pound closed slightly higher but still is in a BEAR TRIANGLE. The Aussie dollar made its highest high again since ’08 but ending up settling slightly lower still very bullish overall. The dollar closed higher but barely ‘hanging on’ above its contract low.

The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.

See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.

Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.