Quick Take: Gold Extends Volatile Summer
NEW YORK (TheStreet) -- Gold has had a brutal 2013 so far and there's a good chance that won't change anytime soon. Phil Streible of RJO Futures told TheStreet's Joe Deaux gold will continue to hurt as tapering talks continue.
After Friday's nonfarm payrolls report revealed a better-than-expected result for our employment situation, gold began to decline once again.
Today, the yellow metal is getting a little bounce, although it is likely to be short-lived, according to Streible. With resistance near $1,250 an ounce, gold will likely begin to head lower over the next couple of trading sessions.
Deaux added that a number of analysts now expect tapering by the
Federal Reserve
to begin sometime around September. Since the market typically prices in events ahead of the announcement, Streible says gold will probably sell off into the news, with traders expecting some sort of reduction to the stimulus program.
It will be a "sell the rumor, buy the fact once it comes out," he said, referring to gold's price action headed into September's FOMC announcements. Gold will remain volatile through the summer, and Streible concluded that it will likely stay within a $100 range, and probably retest the $1,179 lows made last month.
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.