This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gold, Hit Hard Today, to Face a Test Friday

NEW YORK ( TheStreet) -- Gold prices were hit hard today.

Gold futures for April delivery are trading down $23 at $1,552.90 per ounce. Spot gold last traded down about $30 at $1,553.30. As of this writing, the SPDR Gold Shares ($GLD) is trading down 1.4% at $150.24. Spot gold is now trading at the lowest level since July 2012.

Chart selling continues to hurt gold prices. This market has been "lined" with sell stops for some time, and longs are continuing to throw in the towel. The inability of gold prices to maintain trade above key moving averages and above the $1,600 level was the initial trigger for the wave of selling.

There is also widespread discussion today of a continuing drop in holdings of the GLD. There does certainly appear to be a divergence between buyers of physical metals and people who buy "paper" metals. Buyers of physical bullion may see this drop as another opportunity to add to holdings.

Perhaps this divergence is due to the fact that physical buyers may purchase the metal for different reasons than those who invest in an ETF or other gold-based products.

Whatever the reason (or reasons) for gold prices dropping, serious chart damage (see below; source: QST) has been sustained at this point. Gold futures for June delivery are now sitting on weekly chart support at $1,550. This area is the line in the sand. It will either prove to be an awesome buy, or a breach lower will set up more downside for gold, which could see the long-term trend of bullion flip to the downside. We shall see . ...

Gold will continue to monitor outside markets. Crude oil is getting hit hard today as well. The U.S. Dollar Index ($DX) is taking a breather and trading moderately lower. Stocks are not faring much better, with the SPY currently trading down.

Clearly, the focus this week will be on Friday's non-farm payrolls report. The report could determine gold's fate for the near future. Should a large miss occur, that just might be the catalyst for safe-haven buying to return to the yellow metal. Should the number come out better than expected, it will likely pave the way for higher equities and risk assets, and may very well send bullion prices even lower.

Please visit our Web site for updates on the gold market and useful information for purchasing the physical metal.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Matt Zeman is a trader at Kingsview Financial. He began his trading career as a runner in the grain pits at the Chicago Board of Trade before becoming an arbitrage clerk. Eventually he started trading equity options and stocks. Matt now is a full-time futures broker and also authors a blog for gold investors at Appreciate Gold, and contributes to and J.M. Bullion. He has been a frequent guest on CNBC, Fox and Bloomberg, and provides his views on the stock, bond and futures markets for financial media including Dow Jones, the L.A. Times and The Associated Press. Matt is a member of the Chicago Board of Trade, and carries series 3, 7 and 66 licenses.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs