Monday, July 2, 2012

Gold chops

"Look for higher prices" we proclaimed in our last post, using Option Wizard® Trading Method Gold as our guide, i.e. COT net short (commercials)..

Mea culpa.  We ekked out a higher price, yes, but the real action was chop.

6/29/12 1600.50 27.80      144,160
6/22/12 1572.70 -54.80      163,691
6/15/12 1627.50 32.70      158,790
6/8/12 1594.80 -26.90      156,122
6/1/12 1621.70 48.70      130,709

Prices tend to move higher in the fall season;  perhaps we have another 60 days of "chop" to go here before the stalemate is broken.  The deflationists, however, it should be pointed out, are predicting lower prices.  Just as vehemently, the gold bulls are talking higher.  Hence, the "chop" goes on.....