Gold price WEEK AHEAD COMMODITY REPORT: Gold, Silver & Crude Oil Price Forecast: 27 – 31 July 2020
Gold price is up 25 now in 2020, gold, of course, breaking out to the highest level. Since 2011., silver prices have now doubled off the lows from march, so we’ve seen a phenomenal return on that platinum prices up 15 in the latest week and of course, as we go into next week, we are at a very critical point here with gold with the Potential to breach all time highs so with that let’s move over to the charts and we’ll talk you through exactly what we’re looking at as we go into a new week. So, first of all, if we just start off here with platinum, we are currently up over 1 200 points on this trade. Not only that we’ve also hit the profit target on gold at 1900 on friday, if you’re not making money right now – and you absolutely should be – we are seeing some of the largest magnitude moves in the precious metals that we’ve seen in approximately 40 years. Big shift right now in the precious metals and, of course, we’re here to help with that, so let’s get right into it. First of all, let’s look at platinum in more detail, so we discussed this with you in detail last week that we were looking at the potential for this nice ball flag formation to pick up momentum, looking to be a buyer between 800 to 830 us dollars per Ounce multiple times we’ve continued to re, enter into this market at the lows at that area of liquidity and then last week, of course, we finally saw the huge breakout and of course many of you who’ve been in touch with us at the gold and silver club.
Have also been able to capitalize on the platinum breakout, which, in actual fact, to move double the amounts of points at the start of the week than gold did so platinum was really the one that you did not want to miss, but also gold has broken out. Two nine year highs, so gold’s been a brilliant move here as well, so platinum is basically delivered. If you go back and watch last week’s week, head commodity report, we’ve gone back in detail with you on how we were looking to take advantage of that price action. The pressure that was building here not only on the daily but the weekly, the monthly, and we have seen that breakout of the consolidation, really straightforward trade, i say straightforward, but still there were many traders who are on the wrong side of this position. Selling short, not only into platinum, but also gold, as well so we’ve seen in the latest week, over 70 percent of retail traders were selling gold when gold has had the breakout to nine year highs and is on the verge of breaking out at all time highs. Most of the retail market have been caught, offside they’ve been trying to sell short into gold, they’ve been stopped out and, as such, we’ve continued to see that big squeeze to the upside same has happened with silver as well. In fact, let me just take you over to those charts, so basically, traders who’ve been selling short.
These moves here on silver and also on gold. What you’re, seeing on this big breakout to the upside is they’re needing to cover their cell shorts they’re, either getting squeezed out their position or they’re moving into the opposite direction, to make sure they’re hedging against a potential very large breakout and that’s, causing the price to Drive up even more significantly within a parabolic move that we’re seeing right now for not only gold but also silver, so back to platinum, so again, well done to everybody who caught this move. So we have effectively seen over 1 300 point move on. This we’ve still got exposure to platinum here going to next week. The trade is up 1 200 points. Now we have taken profits off the table, but we’re keeping a little bit of exposure. You can see where we’ve broken above the swing highs here back in may, but it still looks quite strong going into another week here. If you view it on the weekly chart, we haven’t actually broken above the previous swing high, which would take us back to around 150 us dollars per ounce, whereas silver has silver on the weekly has broken above the previous highs, and then gold is actually, of course, Broken above the nine year highs here, but we’re very close now to getting a break above the all time highs. So we’ll move over to the gold chart very shortly and we’ll talk you through in more detail our expectation going into next week.
But in order to get the clues as to where gold is going next, you need to keep an eye on the gold to silver ratio, which is tapped down to 80 to 1 last week and is now retracing and it’s back at 83 to 1. You need to watch out for the correlations here with platinum and silver, so essentially, silver is running out of a bit of steam. Here, silver has had a very impressive month so far, it’s up 30 in the month of july we’ve also seen silver double in price. If you have a look at where we had the lows at 11.50 and where we’ve broken out to over 23 us dollars per ounce, silver prices has doubled off the lows, which has been an incredible run here. But what you want to observe right now is the silver price we have several inside candles here on the daily chart. So we need a resolution on silver going to next week. Is it either going to be a pause and a continuation? So if we do see that to the upside, this is very likely where gold is on track to break above the all time highs. This is where we’re going to see a further run to the upside, or is silva, going to pause here. Are we going to see profit taking in the lead up to the fymc statement next week on wednesday, an end of month, profit taking towards the end of next week as well end of next week being the 31st of july? And therefore, if we see silver prices start to roll over for end of month, profit taking at the end of next week, this is where gold could potentially run out of steam.
If we see silver prices pull back going into next week, so platinum as well. The high was put in on thursday. We started to pull back a little bit here on friday, but the question again we’ve still got some exposure on platinum going to next week is where the platinum is simply going to pause and then continue. This momentum, higher go into next week, make a move up to a thousand dollars per ounce, which of course, i would love to see because we’ve still got our long position on platinum. But if we don’t see that i’m ready to to look for opportunities to buy on dips here, if we see that go into next week, so platinum, doesn’t rally if it starts to pull back and we see a bit of pressure to the downside. This is where you’re likely to see gold do something similar as well. So then let’s move it over to gold. So if you have a look at gold on the daily here, what’s been really interesting is that we had opposition established that 1807 1900 was hit on friday, so we’ve hit our target on gold now we’re, just underneath that level going to next week at 18.99 on Spot price, so 1 899 us dollars per ounce. What we observed last week, we only had a dip down to 1 805 us dollars per ounce from there onwards all of the traders in this market waiting for a dip on gold.
They did not get that every single day last week, i’m sure you’re, aware of that. If you trade gold, monday tuesday wednesday thursday friday gold continued to drive higher very shallow retracements each day, we just got extremely shallow retracement. So unless you had your position on already you’re going to miss out on the move, platinum by far moved the most amount of points, double the amount of points as gold last week, and it was a phenomenal trade. But gold’s been good here as well. So gold is almost at the all time highs. So as we go into next week again, we want to observe whether gold is going to do the same, which is not to pull back and continue to drive higher and break above the all time highs and potentially have a big move leading up to wednesday’s fymc Statement or whether we are going to see some profit taking and a bit of a pausing price around the 1900 to 1920 level, which was the previous all time high and from there. The decision point so we’ll be going through this with our traders in detail. Next week, the exact levels that we’re looking at the gold and silver club, the exact zones that we’re looking to capitalize on in the next week. But the major news item that you want to be aware of is next week’s. Fymc statement on wednesday and friday is also the last trading day of the month so friday, the 31st of july be mindful that we could get some profit taking at the end of the month, which will be on friday, so be aware of that and position yourself.
Accordingly, now moving over to the energies, something we mentioned in detail during oil asset of the day, in fact, was also to keep an eye on natural gas. We actually on the close here on friday, banked 190 points on natural gas, which was a lovely trade here. We bought back in at the 1.6 zone and we’ve capitalized on that nice breakout over wednesday, thursday and friday. So we’ve seen that solid move higher that we anticipated on natural gas, which was a six percent move in the latest week. Whereas oil has been consolidating over the last few days, so we’re ricocheting between 40 to 42 us dollars per barrel in the latest week, so a very tight range here on crude oil. We, of course, want to watch out for next week’s api data on tuesday, wednesdays oil inventories and the fomc statement as well. We need some clarity here, so oil either needs to break and close above the previous swing high. Going back to the beginning of march the price wars that we saw at that time before oil prices broke down significantly at the beginning of march, we’ve effectively filled that gap, but right now oil prices are unable to break above that previous, very key level of resistance. So if we were to see us oil breaking close above 43 dollars per barrel, it opens the door for a break out towards 45. However, if oil cannot get above that zone and continues to consolidate, if we were to get a break and close below ‘ per barrel, this is where there’s going to be social opportunities.
I hope many of you have capitalized on these big breakouts in the latest week and in fact with that, if you would like to learn a research driven approach to the markets, where you’re not going to be sitting on the sidelines missing out on these big opportunities That we’re, seeing right now with gold on the verge of breaking out to all time highs. Silver prices have had the biggest move. In 40 years, platinum prices have exploded in the latest week up 14. You want to make sure that you’re capitalizing on this, so that capital sitting in your bank account right now, which is likely earning near to zero interest, perhaps even negative interest, depending on where you are right now in the world. You really want to make sure that you’re taking control of your wealth of your finances here that you’re not going to miss out on the huge opportunities that we see at the moment to generate wealth from your trading. There are many retail traders out there right now that are on the wrong side of these moves. They’Ve been selling short into the metals on some of the biggest breakouts that we’ve had in over 40 years here, because they’re taught incorrectly they’re taught incorrect technical strategies they’re using technical indicators which are showing them. The markets are overbought and they should be selling, which is absolutely the wrong thing to be doing. You need to be looking at a lot more.
You need to be positioning yourself, the same way that the hedge funds, the money managers and the institutions are which continue to build their positions on gold on silver, on platinum on the energies. You need to be trading the same way and building similar positions to how the hedge funds, the money managers, are in these markets, not following the retail market, which are predominantly wrong. They’Re, getting chopped up, they’re getting stopped out or they miss the whole trade entirely. Because of the way that they’ve been taught it’s just having that awareness that, in order to get an edge in the market, you need to be looking at a research driven approach which is taking into account macroeconomic data what the funds are doing in the market. You need to be utilizing market intelligence cycles, looking at capital flows and looking at the inter market correlations to build up your framework to give you an edge in the market. So if you would like to learn a research driven approach join a community of successful traders. There is an opportunity for you to do so. As a member of the gold and silver club, you get access to our exclusive live trading room webinars. You also have access to real time. Trade alerts, trading, research and market insights alongside access to our private members, academy website and support, and one to one mentoring for more information, just go to www.jointhelivetradingroom.com.