Trading Comments, 31 October 2010 (posted 00.30 CET)


Trading and investing can be highly risky. Please read the Disclaimer.

Gold and silver’s strong close on Friday bodes well for the week ahead.  Silver continues to lead, and the gold/silver ratio closed Friday at 55.3, the lowest level since August 7, 2008, which significantly is before the Lehman Brothers collapse and the subsequent huge price slide in silver.  As long as silver continues to lead, expect both precious metals to continue climbing higher.

Gold
1) Long from $1371.20 bought on the Comex spot close on October 18, 2010. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1328.00. If stopped out, then re-buy this position if the Comex spot price the same day closes above $1328.00. (updated 31 October 2010

2) Long from $1338.30 bought on the Comex spot close on October 25, 2010. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1334.00. If stopped out, then re-buy this position if the Comex spot price the same day closes above $1336.00. (updated 31 October 2010)

Silver
1) Long from $24.397 bought on the Comex spot close on October 18, 2010.  Stop-out point: sell at an intraday stop-out point if Comex spot silver trades at $23.46. If stopped out, then re-buy if the Comex spot price the same day closes above $23.62. (updated 31 October 2010)

2) Long from $23.764 bought on the Comex spot close on October 19, 2010.  Stop-out point: sell at an intraday stop-out point if Comex spot silver trades at $23.88. If stopped out, then re-buy if the Comex spot price the same day closes above $24.08. (updated 31 October 2010)

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