Gold Chart of The Week

Each Week Lo ngleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (September 23^rd through September 27^th)

After the FED decided not to taper their Bond Purchase Program last week, global markets were given a nice boost, only to give most of the rally back by this morning. Now with only a few trading days left in the month, we will rely on a parade of FED Members that speak throughout the week to decide whether or not Wednesday was a one-day rally or not. We will also have to keep an eye on headlines as the debate in Washington continues, which threatens a government shutdown. While it is a bit disappointing that there was little follow through after Wednesdays sharp spike in most markets, it is also encouraging for technical traders that are looking for price action to base trades from. Intraday charts of financial markets are ripe with very good opportunities to buy and sell, and should continue to be this way all week. We will be watching markets react to FED Members and headline news this week, but will rely heavily on technical price action for trade basis.

The hourly chart points out the December Gold Futures reaction to the FOMC announcement. It only took a few short minutes to see Gold prices spike well over $50 an ounce, then took a few days to practically give it all back. If the FED Members that speak this week provide timelines tapering that indicate a scale back in Bond Purchases before the end of the year, then we should see a continuation of this pressure on Gold prices. If the speeches show FED Members kicking the taper can into next year, we would expect buying to return to the Gold, but at a slower pace than last Wednesdays volatile move higher.

If you would like to discuss trading in the Futures and Futures Options markets with me, please feel free to call or email me directly. You can reach me directly at (888) 272-6926 or by email at bbooth@longleaftrading.com.

Thank you for your interest,

Brian Booth

Senior Market Strategist

bbooth@longleaftrading.com

888.272.6926

** There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data contained in this article was obtained from sources considered reliable. Their accuracy or completeness is not guaranteed. Information provided in this article is not to be deemed as an offer or solicitation with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this article will be the full responsibility of the person authorizing such transaction.

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