A Golden One Once Panda
Gold fell in early trading in New York and touched $995.00 before fighting back to close at $1006.10/oz with silver putting on an impressive $0.47 to close at $16.60.
We are pleased to see gold move up and especially from the $989.00/oz mark which we mentioned recently as being a minor support level.
At the current price levels there is no doubt that the quality, well managed precious metals producers are doing well and turning a profit. If gold prices can hold at these levels then they will continue to do well. However, the eyes of the investment community are upon us as gold has tried a few times and failed to stay above the $1000/oz level. Furthermore we really do need to see gold power through the old high of $1033.00/oz and make a run to much higher ground.
As we mentioned in yesterdays post this is all about the US Dollar at the moment and yesterday the dollar fell 0.52% to trade at 76.72 thus allowing gold prices to improve.
Options traders need to tread carefully at this point as gold may remain in consolidation mode for now thus eroding your time premium. Our own very humble opinion is that the dollar will go lower and gold will take out its old high and then we are in unchartered waters which should see gold prices delighting all of us.
Stay tuned as we are at a critical juncture and history is about to be made.
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