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Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
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And after last months 'Gold Delivery Rumors' we now have this...
Gold Market Update
Spot Month Position Limits to Increase for Gold Futures
Effective at the close of trading May 28, 2020 for the June 2020 contract month and beyond, spot month position limits will be increased for five gold futures and options contracts, going up from 3,000 to 6,000 futures contract equivalents.
In addition, the single and all-month accountability levels will be raised from 6,000 to 8,000 futures contract equivalents. Spot month limits and accountability levels in the April 2020 and May 2020 contract months will be unchanged. For the full text of this notice, please consult https://www.cmegroup.com.
I couldn't easily find the full notice on the website though
Pretty bullish leg up to near the high of the two-month trading range. It seems pretty tough to remain a gold bull after today's weak close. Seems likely there are sellers below the low of today, but it will be interesting if we get a rally over today's bar. The globexers made a brief go of it, but bears took over. Not sure why I'm posting, other than to dust off this ol' gold thread. ()
I've heard rumours of gold hitting $3000 in the next year. Apparently several nations banks do not have enough on hand to back requests for people wanting to take physical possession of their gold.
Be interesting to see what happens.
In the short-term I'm bullish. Thinking $1900 in the next 4 months.
More than a dozen Chinese financial institutions, mainly trust companies, loaned 20 billion yuan ($2.8 billion) over the past five years to Wuhan Kingold Jewelry Inc. with pure gold as collateral and insurance policies to cover any losses.
...
What could go wrong?
Well, plenty, as at least some of 83 tons of gold bars used as collateral turned out to be nothing but gilded copper.
let's have a look at the gold market.. The analysis is based on the the weekly market profile in combination with the candle stick chart.
The past one and a half week, the gold market was moving in range with its border at levels around 1796.50 USD respectively 1817 USD. As a result, the market created an inside week illustrating uncertainty about the further price direction.
Candle Stick Chart Range
The market performed a strong long push on Friday and also the market profile shows larger participation and, consequently, interest in the upper range which may be an indicator for preferred trades on the long side.
Market Profile View
Nevertheless, both trade directions must be considered. Taking the long perspective (1), the price may break the upper range border with a first target at the previous’ weeks high. In contrast taking a short perspective (2), the market could illustrate weakness targeting the range low or even the previous’ week low. In both cases, the range borders illustrate interesting levels since large market participants are looking for liquidity which they find at those significant levels.
Gold certainly has support in the 1675-1700 zone which so far has held. IMO new historical highs lie ahead with the first step up to 1923 and the second to 2150. For Silver, it looks like the 12.50 downside target ended the long silver bear market. Next upside target is 25.00.
Just my musings.
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- Trade what you see. Invest in what you believe -
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Yesterday, the gold price moved back into its Thursday range during the Asia session. A buyer defended the range and pushed the market in the long direction reaching the first target at the weekly range (1) top. The market got very volatile with the US opening but maintained buyer strength where the range top now functioned as a support level confirming the preferred long direction.
Candle Stick Chart Range
Similarly, the market profile illustrates the situation in a broader perspective. The price reached the week’s top (3) and broke it but could not yet reach the second target level at previous’ week high (4)