Gold Update - 26/6/2017
Gold has been rejected again at the long term uptrend line and this 3 day rally has been nothing more than a dead cat bounce as I predicted.
There has been very weak demand on this rally as can be seen by the cumulative buying volume, a measly 336k contracts. Gold got hit hard overnight as 2.25 Billion worth of futures contracts were dumped on the market as noted by Zerohedge. There is almost always follow through to the downside when gold gets dumped like this overnight. Was it a manipulated selloff? Who knows but it is not good news for bulls.
Gold should take out the 2nd uptrend line next and make its way down to the 1180 - 1200 support region in the weeks to come. I remain Bearish on gold in the near term as it still has yet to make its intermediate cycle low.
Today we also got some bearish options bets in the gold miners Newmont and Goldcorp:
6,871 NEM 21 July 33 puts at 0.56 - Total premium $384,776
12,262 GG 21 July 14 puts at 0.58 - Total premium $711,196
Those are large premiums and I expect gold miners to eventually selloff, even though they have been holding up well. Again I don't believe its time to go all in on gold yet. We should get better prices in a few weeks. My long term outlook is very Bullish, you can check that out here.
I would like to hear your opinions.
GL Traders
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