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
TheStreet Open House

Metals Are Looking More Precious By The Day

Metals Are Looking More "Precious" By The Day The Gold futures for December delivery closed at what was nearly a 5-week high today, with the precious metal climbing 2% during the session settling at $1,342.60. This move came on the heels of what has been a considerable move higher since the temporary resolution that was signed by the President during the early morning hours of October 17th, at which time December Gold was trading just shy of $1,250. It is our belief that there are a number of factors at work here. First, it appears that we have moved beyond the extreme speculation in the contract that we were experiencing during the debt discussions on Capitol Hill. During this time our traders were hearing a lot of chatter across institutional trading desks that there were some major short plays being entered into, with the hope that such desks would be able to capitalize on a swift downward move by the metal on a deal announcement. When we finally received word of the deal on the 17th, and the metal failed to catch an offer, institutions were quick to cover their short, subsequently pushing the metal higher.

Additionally, as we wrote in an article that we published via TheStreet.com on October 7th, our speculation was that the government shutdown would in fact accomplish at least one thing. And that would be that it would provide some sense of certainty around the question of "when" the Federal Reserve will begin to taper its Quantitative Easing program. With the weakness seen in the September jobs report that was released today, showing a non-farm payrolls figure of 148,000 jobs created versus an estimate of 185,000, coupled with what many analysts expect to be a negative impact to GDP and average corporate earnings at best, I tend to believe taper has been pushed back to mid 2014 at the earliest. With the recent action in the dollar, metals, interest rates and equities, it appears that others feel the same way too.

With that said, I believe that my forecast of a $1,400 retest in Gold remains in play. At this point the Federal Reserve will be reluctant to taper until Washington DC provides the market with some certainty, coming in the form of a long-term budget solution. And using history as a guide, it is hard for me to remember the last time our government came to a "long-term" solution for anything, at least one that the market construed to be a positive solution.

Travis McGhee

CEO, FuturesANIMAL

OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits

FuturesANIMAL can be followed on Twitter at twitter.com/ FuturesANIMAL

Travis can be followed on Twitter at twitter.com/Travis_McGhee

At the time of publication, Travis McGhee held positions in SLV.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,055.87 -116.81 -0.68%
S&P 500 1,982.77 -11.52 -0.58%
NASDAQ 4,508.6880 -19.0010 -0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters