Main GLD support: 144.00. Main GLD resistance: 151.50.
Main SLV support: 33.00. Main SLV resistance: 38.50.
Technical Correlations:20-day Simple Moving Average (SMA) on gold is at 1530. The 100-day SMA on silver is at 36.40. Gold bullion has a 12-month 90% correlation to the euro (EUR/USD) currency pair.
Recent Signals:Bullion signals have been few and far between recently. A long-term buy signal will form if gold closes the week above 1550, which could be sustainable if global equity and risk markets reverse a recent bout of negative sentiment. Silver has not shown any desire to move to far in either direction; fair value looks to have been found above 34.00.
Sentiment and outlook toward bullion trade remains mixed after a period of consolidation. Price action favors standing aside in the near term and monitoring the level of participation as support is tested. Traders committing to bullion trades at these levels need to use caution in trade size levels, as resistance tests will create some volatility. Signals will be sent to clients as sustainable movement is seen.
Alternate 24-Hour Trade:Investors who do not want to wait for their regional cash market to open, or do not have 24-hour access to the market they have open positions in, are able to access the 24-hour currency market. There is potential to analyze and trade currencies in a high-volume market that is supported by the global inter-bank system.
Investors can trade currencies in line with a rising global market, or trade ahead of a falling cash market open. Being able to use currencies offers the opportunity to be in a trade before the regional market opens.Traders could trade the currency pair AUD/USD in-line with the potential seen in bullion trade. Buying the U.S. dollar and selling the Australian dollar on days of equity and bullion weakness is a simple process of placing a sell order on AUD/USD. The position can be managed in a similar way that equity-based trades would be bought and sold. If global market trade favors the selling of gold and silver below 1515 and 35.00, and equity indices continue recent selling, a potential trade signal will be issued on AUD/USD. Selling AUD/USD from 1.0490 draws in 1.0450 and 1.0390.
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