“Watch then as gold trades toward $1,700 and toward 1,300 (euros), for we fear that under there shall be severe stop losses that shall be touched off…sufficient to send gold perhaps to $1,625-$1,635 and toward 1,245-1,255 (eruos)/oz”.
NEW YORK (Commodity Online): Investor and newsletter writer Dennis Gartman suspects that a large number of sell stops in gold are likely building below $1,700 and 1,300 euros per ounce.
Stops are pre-placed orders to buy or sell when certain chart points are hit, often used by traders to exit trades that are going against them.
Gartman describes himself as currently holding a “core” position in gold rather than being aggressively long. He looks for central banks to remain buyers during periods of weakness but not to chase the market higher.
Global gold prices are higher in trading early on Wednesday. Some bargain hunters have stepped in to buy the dip, and some short covering is also seen. The major storm shut down most of the U.S. eastern seaboard, including New York City, that had traders all over the world waiting for the New York markets to reopen.
At 1:16 EST or 10:16 PST December gold last traded up $12.80 at $1724.9 an ounce on the Comex division of the New York Mercantile Exchange. December Comex silver last traded up $0.54 at $32.35 an ounce.
Mark Leibovit Midday Update (9:38 PST)
PRECIOUS METALS (Spot prices):
The overall strategy here is to be looking for a significant long entry trading entry point sometime between now or just after the election based on seasonal studies.
Gold is up today 14.10 at 1723.10.
Silver is up .59 today at 32.34.
Platinum is up 21.00 at 1567.00.
Palladium is up 11.00 at 605.00.
Should weakness resume (gold under 1697.20 and silver under 31.44) into early November, theoretical retracement levels in gold are now 1676 and 1642 with 31.27, 30.05, 29.63, 28.96 and 28.50 outstanding in silver.
That said, we are long CEF, GDX and GDXJ here anyway.
If you don’t own the precious metals, anytime is a good time to buy them. The expression goes: ‘Don’t wait to buy gold – buy gold and wait’!
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Leibovit’s CANADIAN NEWS:
The TSX is up 66.27 at 12,443.72 or +0.54% and the TSX Venture is up 7.51 at 1,210.43 or +0.58%. The Canadian Dollar (using FXC) is down .23 at 99.43or -0.23%, trading as high as 102.96 on September 14. The U.S. Dollar Index is up .006 at 79.937. Its recent low was posted on September 14th at 78.601. I’ve been of the view that we’re going to see a new low in the Dollar Index, following the October correction or after the Presidential Election.
Canada’s economy slipped into reverse in August, the first decline in six months, led lower by the manufacturing and energy sectors, Statistics Canada said Wednesday. Gross domestic product contracted by 0.1% during the month, following a 0.2% gain in July. Economists had expected the economy to match that growth in August. August marked the first monthly decline since February, and lends credence to the view that higher interest rates are a long way off. Canada’s economic growth remains on track for the year despite unexpectedly weak gross domestic product data for August, Finance Minister Jim Flaherty said Wednesday. The Bank of Canada, in its quarterly Monetary Policy Report released last week, was still predicting growth of 2.2% for all of 2012. The central bank’s outlook for next year is 2.3% and 2.4% in 2014.
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